Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 - Free CGRC Practice Questions and Study Guide

The choice of qualitative risk analysis is indeed appropriate when assessing and evaluating potential risks against a planned strategy. This approach emphasizes understanding the nature and characteristics of the risks rather than assigning numerical values. It involves gathering subjective judgments from experts and stakeholders regarding the likelihood and impact of various risks, allowing the organization to prioritize risks based on their potential effect on strategic objectives.

Qualitative risk analysis helps organizations to identify risks that may not be quantifiable or for which precise data is unavailable. Through tools such as risk matrices or risk registers, organizations can categorize risks as high, medium, or low based on their perceived severity and relevance to the strategy. This technique is particularly useful in contexts where quick decision-making is required and where complex numerical analysis may not effectively capture the subtleties of the risk landscape.

While quantitative risk analysis employs numerical methods and statistical models to evaluate risks, it may not always be practical for initial assessments or for risks that are difficult to quantify. Risk impact analysis focuses on understanding the consequences of identified risks but does not inherently prioritize them in the context of strategic planning. A comprehensive review tends to be broader and might not specifically target the risk assessment process as effectively as qualitative risk analysis, which is more tailored to align with strategic goals.

Overall, the qualitative