Which analysis is based on adding positive factors and subtracting negative factors to determine a net result and support a risk response?

Which analysis is based on adding positive factors and subtracting negative factors to determine a net result and support a risk response?

• A. ROI
• B. Countermeasure
• C. Cost-benefit analysis
• D. Current risk

Answer: (C)

When evaluating how to respond to a risk, you compare what you gain from a chosen action with what it costs to implement and maintain it. This approach adds up positive factors (benefits) and subtracts negative factors (costs) to arrive at a net result. That net value helps decide whether a risk response is worthwhile and which option gives the most favorable outcome, often guiding whether to implement a mitigation, accept the risk, or pursue another strategy. This matching of benefits and costs to determine a net outcome is the essence of cost-benefit analysis. ROI focuses on the return relative to the investment and is more about the efficiency of an investment rather than weighing every benefit and cost to decide on a risk response. A countermeasure is a control designed to reduce risk, not an analysis method. Current risk refers to the present risk level, not to a method for evaluating actions by balancing positives and negatives.

When evaluating how to respond to a risk, you compare what you gain from a chosen action with what it costs to implement and maintain it. This approach adds up positive factors (benefits) and subtracts negative factors (costs) to arrive at a net result. That net value helps decide whether a risk response is worthwhile and which option gives the most favorable outcome, often guiding whether to implement a mitigation, accept the risk, or pursue another strategy. This matching of benefits and costs to determine a net outcome is the essence of cost-benefit analysis.

ROI focuses on the return relative to the investment and is more about the efficiency of an investment rather than weighing every benefit and cost to decide on a risk response. A countermeasure is a control designed to reduce risk, not an analysis method. Current risk refers to the present risk level, not to a method for evaluating actions by balancing positives and negatives.