The correct option is Decision makers require exact probability estimates and expected monetary losses to prioritize controls.

This option is correct because numerical risk assessment produces the precise probability estimates and expected monetary loss figures that decision makers need to compare control costs and expected benefits and to prioritize investments in a banking environment.

Quantitative methods support expected loss calculations and probabilistic modeling when reliable loss data and analytics capability exist. Banks commonly maintain financial loss records and can use statistical models and scenario analysis to generate monetized risk estimates for cost benefit analysis and capital allocation.

Risks must be framed as stakeholder perceptions and qualitative categories is incorrect because that description points to a qualitative approach based on narratives and categories rather than a numerical, probability driven assessment.

There is insufficient historical loss data to compute reliable statistics is incorrect because a lack of sufficient data makes numerical estimates unreliable and therefore quantitative methods would not be appropriate until data or suitable proxy models are available.

The risk team has limited analytics expertise so a simplified checklist approach is preferred is incorrect because limited analytics capability argues against choosing a numerical method until the team gains skills or tools, and it favors simpler qualitative techniques instead.

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