(ISC)2 Certified in Cybersecurity Practice Exam

What is the term for the impact of a risk relative to its likelihood?

1. Risk Scope

2. Risk Threshold

3. Risk Evaluation

4. Risk Magnitude

The correct answer is: Risk Threshold

In the context of risk management, the term that captures the impact of a risk relative to its likelihood is often referred to as "Risk Magnitude." This concept involves assessing both the potential severity of an impact (the consequences) that could arise if a risk event occurs and the probability of that event occurring. Understanding risk magnitude is crucial because it allows organizations to prioritize risks based on their significance. If a risk is highly likely to occur and could have a severe impact, it demands immediate attention and mitigation strategies. Conversely, a risk that is unlikely to occur, regardless of its potential impact, may be monitored but doesn’t require the same level of proactive management. The other options do not effectively define the relationship between impact and likelihood in the same way. For instance, “Risk Scope” refers to the breadth of risk exposure or the range of potential impacts and is not primarily focused on the relationship between likelihood and impact. “Risk Threshold” indicates the level of risk that an organization is willing to accept before taking action, while “Risk Evaluation” is the process of assessing risks and determining their nature and significance rather than specifically relating to the concept of risk impact relative to its likelihood.