Quantifying the value of a single asset helps the organization to understand the:

Quantifying the value of a single asset helps the organization to understand the consequences of risk materializing, as it indicates how much impact or loss the organization would suffer if the asset is compromised, damaged, or destroyed by a threat. The value of an asset can be determined by various methods, such as the cost of acquisition, replacement, or restoration, the market value, the income or revenue generated, or the impact on the business objectives or reputation. The other options are not the best description of what quantifying the value of a single asset helps the organization to understand, as they are either too broad (overall effectiveness of risk management, necessity of developing a risk strategy) or not directly related to the asset value (organization’s risk threshold). References = IT Asset Valuation, Risk Assessment and Control Implementation Model; How to quantify assets?; Asset Valuation - Definition, Methods, and Importance