To obtain a measure of probable loss, companies ________.
A) multiply likelihood by the probability of occurrence
B) multiply the vulnerability by the probability of occurrence
C) multiply likelihood by the cost of the consequences
D) multiply residual risk by the cost of the consequences

Question

Quizplus · Accepted Answer

Companies obtain a measure of probable loss by multiplying the likelihood of an event occurring by the cost of the consequences if it does occur. This helps in assessing potential financial impacts.

To Obtain a Measure of Probable Loss, Companies ________