What is the Risk likelihood called when using the Quantitative method?

In the context of risk assessment using the Quantitative method, the term for Risk likelihood is known as the Annualized Rate of Occurrence (ARO). ARO is a crucial component in quantitative risk analysis as it represents the expected frequency of an event occurring over a year. This metric allows organizations to assess potential financial impacts by quantifying how likely a particular risk event is to happen within a specific timeframe.

By utilizing ARO, organizations can effectively calculate the overall risk exposure by combining it with the Single Loss Expectancy (SLE), which estimates the monetary impact of a single occurrence of the risk. This relationship is fundamental in developing a comprehensive understanding of the potential threats an organization faces and allows for better risk management and mitigation strategies.

While other terms like Likelihood and Calculated Score may describe aspects of risk assessment, they do not specifically capture the frequency aspect quantified over a year, which is the essence of the ARO in the quantitative risk analysis methodology.