Certified Management Accountant 2025 – 400 Free Practice Questions to Pass the Exam

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What are some examples of Quantitative Risk Analysis techniques?

Brainstorming and focus groups

Scenario analysis, benchmarking, cash flow at risk

Quantitative risk analysis techniques provide a structured approach to assessing and measuring risks using numerical data. Selecting scenario analysis, benchmarking, and cash flow at risk represents a clear application of quantitative methods, as these techniques rely on identifiable metrics and statistical data to evaluate potential outcomes.

Scenario analysis allows for the examination of different potential future events and their impacts on the project's objectives, using quantifiable metrics to analyze risks in various situations. Benchmarking offers a comparative analysis against industry standards or averages, providing quantitative data points that help to assess performance risk. Cash flow at risk quantifies the potential decline in cash flows over a specific period, helping organizations gauge financial exposure quantitatively.

Other options contain methods that predominantly fall within qualitative risk analysis, meaning they focus more on opinions, discussions, and less on numerical modeling, which is why they do not fit in the context of quantitative techniques.

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Historical analysis and prediction models

Expert judgment and case studies

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