Question 18
Domain 2 — Risk Identification, Assessment, and AnalysisIn risk analysis, what does "likelihood" refer to?
Correct answer: B
Explanation
In risk analysis, "likelihood" means the chance that a risk event will happen. It refers to the probability of occurrence, which is the standard way to measure how likely an identified risk is to materialize.
Why each option is right or wrong
A. The financial impact of a risk event
B. The probability of a risk event occurring
In standard risk analysis terminology, “likelihood” is the probability that an identified risk event will occur, as used in common risk matrices and qualitative/quantitative assessments. It is distinct from impact or consequence, which measures the effect if the event happens; here the question asks for the occurrence side of the risk equation.
C. The speed of risk response
D. The number of affected systems