Which step involves evaluating impact and probability of risks?

Which step involves evaluating impact and probability of risks?

• A. Identify potentials risks
• B. Assess severity and likelihood
• C. Mitigation planning
• D. Monitoring and response

Answer: (B)

Evaluating impact and probability is the risk assessment stage. It involves estimating how serious a potential event would be if it occurred (impact) and how likely it is to occur (probability). This information lets you prioritize risks, so those with high severity and high likelihood get attention first and guide decisions about which risks to mitigate, monitor, or accept. Tools like risk matrices or scoring systems help quantify these factors into a risk level. In contrast, identifying potential risks is about listing what could go wrong, mitigation planning focuses on actions to reduce risk after it’s understood, and monitoring and response deals with tracking risks and acting when they materialize.

Evaluating impact and probability is the risk assessment stage. It involves estimating how serious a potential event would be if it occurred (impact) and how likely it is to occur (probability). This information lets you prioritize risks, so those with high severity and high likelihood get attention first and guide decisions about which risks to mitigate, monitor, or accept. Tools like risk matrices or scoring systems help quantify these factors into a risk level. In contrast, identifying potential risks is about listing what could go wrong, mitigation planning focuses on actions to reduce risk after it’s understood, and monitoring and response deals with tracking risks and acting when they materialize.