A risk with a probability of 0.3 and an impact of 0.8 has a higher risk score than a risk with a probability of 0.6 and an impact of 0.5.
True
False
The correct answer is False. To calculate the risk score, we use the formula: Risk Score = Probability x Impact.
For the first risk: 0.3 x 0.8 = 0.24 For the second risk: 0.6 x 0.5 = 0.30
Although the first risk has a lower probability, its impact is not enough to result in a higher overall risk score compared to the second risk. This example illustrates the importance of considering both probability and impact when assessing risks, rather than focusing solely on one aspect. A risk with a higher probability and a considerable impact can potentially be more critical.
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