Scenario 4:Headquartered in Barcelona, Spain, Solenco Energy is a renewable energy provider that operates several...

The correct answer isB. Yes, organizations need to calculate the EMV of the identified negative risks only. ISO 31000 does not mandate specific quantitative techniques but allows organizations to use appropriate methods to analyze risk, provided they support informed decision-making. Expected Monetary Value (EMV) is a commonly used quantitative technique for analyzingnegative (downside) risks, particularly where financial impacts can be reasonably estimated.

In Scenario 4, Solenco applied EMV appropriately by combining the probability of failure with the estimated financial consequences. This provided a clear, comparable metric for prioritizing the inverter failure risk relative to other risks in the risk register. ISO 31000 supports such proportional and context-appropriate analysis.

Option A is incorrect because not all risks require EMV calculation; the technique should be applied selectively based on relevance and materiality. Option C is incorrect because ISO 31000 does not prohibit point-in-time quantitative techniques; instead, it encourages combining them with monitoring and review. Option D is incorrect, as EMV is widely used across industries, not only in finance.

From a PECB ISO 31000 Lead Risk Manager perspective, EMV is acceptable and useful for analyzing significant financial risks when assumptions are transparent and results are reviewed regularly. Therefore, the correct answer isYes, organizations need to calculate the EMV of the identified negative risks only.