Ace the 2025 Certified Governance Risk & Compliance (CGRC) Challenge – Navigate the Governance Maze with Confidence!

Question: 1 / 400

What is the purpose of conducting qualitative risk analysis?

To assess potential financial impacts of risks

To prioritize risks based on their significance

Conducting qualitative risk analysis is primarily aimed at prioritizing risks based on their significance to the organization. This process involves evaluating the likelihood and impact of various risks to understand which ones require more immediate attention or resources.

In qualitative risk analysis, risks are often categorized and ranked to facilitate decision-making. This prioritization helps organizations allocate their risk management efforts effectively by focusing on the most significant risks that could impact their objectives. By understanding which risks pose the greatest threat, organizations can develop appropriate mitigation strategies and action plans.

Other options, such as assessing financial impacts, calculating exact probabilities, or eliminating all identified risks, do not align with the main purpose of qualitative risk analysis. While they may be related to broader risk management processes, they are not the core focus of qualitative analysis which is centered around relative significance rather than quantitative measurements or total risk elimination.

Get further explanation with Examzify DeepDiveBeta

To calculate exact probabilities of risks occurring

To eliminate all identified risks

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy