Which of the following best describes "Quantitative Risk Assessment"?

"Quantitative Risk Assessment" is best described by the choice that highlights its reliance on numerical data to evaluate risks. This method quantifies potential risks by analyzing statistical data and mathematical models, enabling organizations to assign numerical values to both the likelihood and impact of various risks. This quantification allows for a more objective analysis, facilitating decision-making based on measurable risk levels.

In this framework, risks are often expressed in terms of monetary values, probabilities, or other quantifiable metrics, which can be used to prioritize risk management efforts. By employing quantitative techniques, organizations can perform detailed analyses that help identify the most critical risks and allocate resources accordingly.

The other choices represent different methodologies or frameworks that do not align with the numerical focus inherent in quantitative assessments. For example, a method based on expert opinion would be qualitative, as it is dependent on subjective judgment rather than measurable data. Similarly, frameworks that categorize risks without numerical analysis do not provide the granularity or objectivity afforded by a quantitative approach. Compliance audits involve evaluating adherence to standards rather than assessing risks in a quantitative manner. Thus, the emphasis on numerical data is what distinctly characterizes Quantitative Risk Assessment.