What is the "Risk Calculations" process in the FAIR methodology focused on?

The "Risk Calculations" process in the FAIR methodology focuses on determining quantitative values for loss event frequency and loss magnitude. This aspect is essential to the FAIR framework because it transforms subjective assessments of risk into measurable financial terms.

By quantifying these elements, organizations can better understand the potential financial implications of risks they face. Loss event frequency estimates how often a loss event could occur within a specific time period, while loss magnitude assesses the potential impact of such an event. This quantitative approach allows organizations to make informed decisions regarding risk management, prioritization of risks, and allocation of resources for risk mitigation. It provides a structured way to evaluate risks rather than relying solely on qualitative descriptions or historical assumptions.