BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Probability of the Event * Potential Hazard
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Risk of the Event * Potential Severity
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V * S
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Probability of the Event * Potential Severity
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Detailed explanation-1: -This notion is illustrated in Figure 2, which highlights the following four basic components of risk: (1) context, (2) action, (3) conditions, and (4) consequences.
Detailed explanation-2: -“Severity” is the impact or damage which would arise if the risk were to be realized. “Probability” is the likelihood that the risk could arise. “Detectability” is the time it will take to realize that the risk has actually been realized.
Detailed explanation-3: -1.3 Risk levels We have decided to use three distinct levels for risk: Low, Medium, and High. Our risk level definitions are presented in table 3. The risk value for each threat is calculated as the product of consequence and likelihood values, illustrated in a two-dimensional matrix (table 4).