Quantitative Risk Assessment Techniques

B.

The effect of the theft of customer data or web site defacement by hackers could lead to a permanent decline in customer confidence, which does not lend itself to measurement by quantitative techniques.

Loss of a majority of the software development team could have similar unpredictable repercussions.

However, the loss of electrical power for a short duration is more easily measurable and can be quantified into monetary amounts that can be assessed with quantitative techniques.

Quantitative risk assessment is a type of risk assessment that uses measurable, numerical values to estimate the likelihood and potential impact of a risk event. This technique involves assigning a numerical value to each element of a risk event and then using mathematical calculations to determine the overall risk associated with the event.

Of the risks listed in the question, the one that is best suited for quantitative risk assessment is the loss of the software development team.

Here are the reasons why:

A. Customer data stolen: While it is possible to quantify the potential financial loss that could result from a data breach, it is difficult to accurately measure the likelihood of such an event occurring. In addition, the impact of such an event can be difficult to quantify, as it can involve factors such as reputational damage and loss of customer trust.

B. An electrical power outage: While it is possible to estimate the financial impact of a power outage, it is difficult to accurately measure the likelihood of such an event occurring. In addition, the impact of a power outage can vary widely depending on the size and scope of the organization affected.

C. A website defaced by hackers: While it is possible to quantify the potential financial loss that could result from a website defacement, it is difficult to accurately measure the likelihood of such an event occurring. In addition, the impact of a website defacement can be difficult to quantify, as it can involve factors such as reputational damage and loss of customer trust.

D. Loss of the software development team: This risk is best suited for quantitative risk assessment because it is possible to measure the financial impact of losing a software development team. For example, the cost of hiring and training a new team, the potential delay in product development, and the potential loss of revenue due to delayed product releases can all be quantified. In addition, the likelihood of such an event occurring can be estimated based on factors such as the size and experience of the team, the complexity of the product being developed, and the availability of backup resources.

In summary, while all of the risks listed in the question have the potential to be quantified to some degree, the loss of the software development team is the most appropriate for quantitative risk assessment.