Which approach to Risk Assessment primarily focuses on monetary values?

The approach to Risk Assessment that primarily focuses on monetary values is the quantitative method. This technique involves the use of numerical data to evaluate and quantify risks in financial terms. By assigning a monetary value to potential losses, organizations can better understand the financial implications of various risks and make informed decisions about risk management.

Quantitative risk assessment helps in creating forecasts regarding potential financial losses. This can involve the use of statistical analyses, which provide a concrete way to measure risks, allowing decision-makers to prioritize risk mitigation efforts based on the potential economic impact.

In contrast, qualitative assessments focus on descriptive measures and are often subjective or based on the experience and opinions of experts rather than strict numerical values. This method can provide insights but lacks the precise financial quantification of risks found in quantitative assessments. Other approaches mentioned, such as comparative and descriptive assessment, also differ fundamentally from the numerical and financial focus that defines the quantitative approach.