According to one or more of the standards, risk is defined as:
A) The negative effect of the probability of a hazard
B) A condition that exceeds the organization's risk appetite
C) A condition that results in a loss
D) The effect of uncertainty upon objectives

Question

Quizplus · Accepted Answer

The definition of risk according to ISO 31000 and COSO ERM is "the effect of uncertainty upon objectives". It includes both negative and positive impacts, and is not necessarily a condition that results in a loss. A condition that exceeds the organization's risk appetite is more specifically referred to as a risk event or risk exposure.

According to One or More of the Standards, Risk Is