Which risk assessment approach combines both quantitative and qualitative methods?

The approach that combines both quantitative and qualitative methods is indeed the combination of quantitative and qualitative risk assessment. This method is beneficial because it leverages the strengths of both types of assessments to provide a more comprehensive view of risks.

Quantitative risk assessment focuses on numerical data and statistical methods to evaluate risks, enabling organizations to assign precise values to potential losses and impacts. This allows for a more straightforward calculation of risk exposure and helps in prioritizing risks based on measurable criteria.

On the other hand, qualitative risk assessment relies on subjective judgment and descriptive data to identify risks and their potential impacts. It allows organizations to understand the context of risks, the scenarios in which they may occur, and the associated factors that contribute to their likelihood and impact.

By combining both approaches, organizations benefit from the quantitative analysis that can support decision-making with data, while also incorporating qualitative insights that add depth and context to the risk evaluation process. This holistic view enables better-informed choices concerning risk management strategies and resource allocation.