Understanding Risk and Risk Severity

Front

What is a risk?

Back

A risk is a threat that could result in some form of loss at some point in time.

Front

How is risk severity calculated?

Back

Risk severity = probability of the threat occurring × expected impact level/value of the loss.

Front

What are the measures for risk severity?

Back

Risk severity measures include low, medium, high, and extreme.

Front

What are the categories for the probability of a threat occurring?

Back

The probability categories are unlikely (approximately every year), likely (approximately every week or month), and very likely (approximately once or more a day).

Front

What are the levels of impact value of the loss?

Back

The impact levels are minor, moderate, and major.