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

Question

Quizplus · Accepted Answer

Companies obtain a measure of probable loss by multiplying the likelihood of an event by the cost of the consequences, which provides an estimate of the expected loss.

To Obtain a Measure of Probable Loss,companies ________