Which type of analysis helps prioritize risks based on their potential impact?

The option that best fits the description of prioritizing risks based on their potential impact is risk prioritization analysis. This type of analysis specifically aims to evaluate and rank risks in order of their significance to the organization, helping decision-makers focus on the most critical risks that could affect the business negatively.

Using risk prioritization analysis, organizations can assess the severity of risks and allocate resources more effectively to mitigate or address the highest-priority risks, ensuring that they manage their risk landscape efficiently. This is crucial for maintaining operational resilience and safeguarding against potential threats.

In contrast, other types of analysis serve different purposes. For example, qualitative analysis involves subjective assessments and descriptions of risks without numerical measurements. Quantitative analysis, on the other hand, provides statistical models and assigns numerical values to risks, making it more focused on calculating probabilities and impacts rather than prioritizing them. Impact analysis, while it examines the consequences of risks, does not necessarily prioritize them in a hierarchical manner, which is the primary function of risk prioritization analysis.