Certified Incident Handler (ECIH v3) — Question 26

Risk is defined as the probability of the occurrence of an incident. Risk formulation generally begins with the likeliness of an event's occurrence, the harm it may cause and is usually denoted as Risk = ∑(events)X(Probability of occurrence)X?

Answer options

• A. Magnitude
• B. Probability
• C. Consequences
• D. Significance

Correct answer: C

Explanation

The correct answer is 'C. Consequences' because risk is calculated by considering the potential outcomes of an event, which includes the consequences of its occurrence. The other options do not capture the aspect of risk that involves the impact of the event, making them less relevant to the definition of risk.