What is a limitation of quantitative risk assessment?

A limitation of quantitative risk assessment is that it requires numerical data. This means that for a quantitative risk assessment to be effectively conducted, there needs to be access to specific data that can be measured and analyzed statistically. Organizations may sometimes lack sufficient numerical data about certain risks, or the data available may not accurately reflect the complexities of real-world scenarios.

While this approach provides a clear framework for assessing risks through numerical values, it can be limiting because it may overlook subjective elements such as human judgment, expert opinion, or qualitative factors that can also significantly influence risk perception and management. Hence, the reliance on concrete data can restrict the assessment of situations where only qualitative insights are available, potentially leading to an incomplete risk analysis.