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Question 351 - CTFL-2018 discussion

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Which of the following BEST defines risk level?

A.
Risk level Is calculated by adding the probabilities of all planned risks to a project
Answers
A.
Risk level Is calculated by adding the probabilities of all planned risks to a project
B.
Risk level Is determined by the likelihood of an event happening and the impact or harm from that event
Answers
B.
Risk level Is determined by the likelihood of an event happening and the impact or harm from that event
C.
Risk level Is calculated by dividing the sum of all known risks by the sum of all unknown risks
Answers
C.
Risk level Is calculated by dividing the sum of all known risks by the sum of all unknown risks
D.
Risk level is determined by calculating the absolute value of the sum of all potential issues that may occur on the project
Answers
D.
Risk level is determined by calculating the absolute value of the sum of all potential issues that may occur on the project
Suggested answer: B

Explanation:

The correct answer is B, as it defines risk level correctly.Risk level is determined by the likelihood of an event happening and the impact or harm from that event4.Likelihood is the probability or frequency of the event occurring4.Impact is the severity or consequence of the event occurring4.Risk level can be calculated by multiplying likelihood and impact, or by using a risk matrix that assigns risk levels based on different combinations of likelihood and impact4. Option A is incorrect, as it does not define risk level correctly.Risk level is not calculated by adding the probabilities of all planned risks to a project, but by assessing the likelihood and impact of each individual risk4. Option C is incorrect, as it does not define risk level correctly.Risk level is not calculated by dividing the sum of all known risks by the sum of all unknown risks, but by assessing the likelihood and impact of each individual risk4. Option D is incorrect, as it does not define risk level correctly.Risk level is not determined by calculating the absolute value of the sum of all potential issues that may occur on the project, but by assessing the likelihood and impact of each individual risk4.

Reference:4, Section 2.8

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asked 18/09/2024
Duane Joyce
33 questions
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