What type of risk management is involved in understanding how threats can impact a business?

The focus of the question is on understanding how threats can impact a business, which is a critical aspect of risk management. A threat assessment involves identifying potential threats and evaluating their likelihood and impact on the organization. It encompasses analyzing vulnerabilities, potential attack vectors, and the consequences that threats might have on business operations, setting the stage for informed decision-making regarding risk mitigation strategies.

Threat assessment is essential because it provides a systematic approach to evaluate the severity and probability of various threats. This understanding enables organizations to prioritize their security efforts, allocate resources effectively, and develop a comprehensive risk management strategy, which includes planning for prevention, detection, and response to potential security incidents.

The other options, while related to risk management, serve different purposes. Qualitative analysis focuses on non-numeric data to assess risks, often relying on subjective judgment. Quantitative analysis, on the other hand, deals with numerical data to assess risks, typically involving statistical methods and calculations. Incident response refers to the actions taken after a security incident has occurred, rather than the upfront assessment of potential threats. Thus, these methods do not directly address the core aspect of understanding how threats impact a business as effectively as a threat assessment does.