Estimating the Likelihood of Negative Events in Risk Management

Estimating the Likelihood of Negative Events

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Question

Which of the following would be MOST helpful when estimating the likelihood of negative events?

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A. B. C. D.

D.

When estimating the likelihood of negative events, the most helpful method would be threat analysis. Threat analysis is a process of identifying potential threats and determining the likelihood and potential impact of each threat. This process helps to identify the likelihood of negative events and prioritize potential risks.

Business impact analysis is a process of identifying critical business functions and assessing the impact of disruptions to those functions. It is useful in determining the impact of negative events on business operations, but it does not necessarily help to estimate the likelihood of those events occurring.

Cost-benefit analysis is a process of comparing the costs and benefits of different options to make decisions. It is useful in evaluating the financial impact of risk management decisions but does not necessarily help to estimate the likelihood of negative events.

Risk response analysis is a process of identifying and selecting risk responses based on the results of risk assessment and analysis. While it helps to identify potential responses to negative events, it does not necessarily help to estimate the likelihood of those events occurring.

In conclusion, the most helpful method when estimating the likelihood of negative events is threat analysis as it helps to identify potential risks and determine the likelihood and potential impact of each threat.