Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 – All-in-One Guide to Master Your Certification!

The calculation of risk exposure during quantitative risk analysis is grounded in the understanding of both the likelihood of a risk event occurring and the potential impact it would have if it did occur. Specifically, risk exposure is determined by multiplying the probability of a risk event by the impact of that event.

This approach allows organizations to quantify risk in a way that is actionable and measurable. By using this formula, organizations can prioritize risks based on their potential financial impact or other significant consequences. If a risk has a high probability of occurring and a high impact, it would represent a greater risk exposure than a risk with a low probability and low impact.

The other choices offered do not accurately reflect how risk exposure is calculated in a quantitative risk analysis framework. While historical information and research can provide context for assessing probability and impact, they do not directly determine risk exposure through a systematic calculation. Instead, they serve as supportive data that informs the assessment process, but the actual risk exposure is mathematically defined as a product of probability and impact.