Quantitative Risk Analysis is a systematic approach used to evaluate the potential risks associated with a project or investment. It involves the use of mathematical models and statistical techniques to quantify the likelihood and impact of various risks. By assigning numerical values to uncertainties, organizations can make informed decisions based on data rather than intuition. This analysis often includes tools like Monte Carlo simulations and sensitivity analysis to assess how different variables affect outcomes. The results help stakeholders understand the range of possible scenarios, enabling them to develop strategies to mitigate risks and optimize resource allocation effectively.