Question

In the third level of risk-based assessment, what is the purpose of risk analysis of the performed activity?

1) To identify potential risks and their impacts
2) To assess the likelihood of risks occurring
3) To determine appropriate risk mitigation strategies
4) To evaluate the effectiveness of existing risk controls

Answer 1

The purpose of risk analysis in the third level of risk-based assessment is to identify potential risks and their impacts, assess the likelihood of risks occurring, determine appropriate risk mitigation strategies, and evaluate the effectiveness of existing risk controls.

Step-by-step explanation:

In the third level of risk-based assessment, the purpose of risk analysis of the performed activity is to:

1. Identify potential risks and their impacts: This involves identifying the potential risks that could arise from the activity and understanding their potential impacts on the organization or project.
2. Assess the likelihood of risks occurring: By analyzing the activity and its context, the likelihood of different risks occurring can be evaluated.
3. Determine appropriate risk mitigation strategies: Understanding the risks allows for the development of appropriate strategies to mitigate or manage those risks.
4. Evaluate the effectiveness of existing risk controls: By analyzing the risks, it is possible to assess the effectiveness of existing controls in place to mitigate those risks.