Asset valuation is necessary to quantify the potential impact of risks.
It provides the basis for assessing risk severity and prioritization.
Why This is Correct:
Without assigning value, it is impossible to calculate financial impacts or prioritize risks.
Why Other Options Are Incorrect:
A. Likelihood of attacks: Part of the calculation, not a prerequisite.
B. Calculating risks: Comes after valuation.
D. Relative risk assessment: Requires valuation as input.
References:
EC-Council highlights the importance of asset valuation as the first step in effective risk assessment and calculation.
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