Question

A risk practitioner is reviewing the organization's qualitative risk analysis results. Several business units rated similar risks very differently — one unit labeled a data-entry error risk as 'High' while another rated an almost identical risk as 'Low.' The differences appear to stem from how each assessor interpreted the rating scale. Which of the following BEST addresses the underlying weakness in the current approach?

Accepted Answer

Define clear, documented criteria describing what each likelihood and impact rating level means

Answer

Replace all qualitative analysis with quantitative analysis using annualized loss expectancy

Answer

Require the risk committee to re-score every risk submitted by the business units

Answer

Increase the number of rating levels from three to five to improve granularity