Is the statement true or false? Quantitative risk analysis evaluates risks based on their probability and impact.

The statement is true. Quantitative risk analysis is a systematic approach that involves calculating the probability of risks occurring and assessing the potential impact these risks may have on a project or organization. This method is utilized to quantify risks in numerical terms, often involving statistical techniques and modeling. By analyzing the likelihood and the consequences of identified risks, organizations and project managers can make informed decisions regarding risk mitigation strategies and allocate resources effectively. This approach differs from qualitative risk analysis, which focuses on the subjective assessment of risks without quantifying them in numerical terms. The use of quantitative methods allows for a more precise understanding of the potential effects of risks, facilitating strategic planning and risk management efforts.