Question

How is expected loss calculated when performing risk assessment?

a. Impact times expected loss.
b. Impact times likelihood.
c. Inherent risk times likelihood.
d. Residual risk times likelihood.

Answer 1

The expected loss in risk assessment is calculated by multiplying the impact of an event by its likelihood.

Step-by-step explanation:

The expected loss is calculated in risk assessment by multiplying the impact of an event by its likelihood.

This can be represented by the formula:

Expected Loss = Impact x Likelihood

For example, if an event has a high impact and a high likelihood of occurring, the expected loss will be greater compared to an event with low impact and low likelihood.