Exam 712-50 topic 1 question 69 discussion

B is the correct answer.

D response misses the consequences/impact part; then, is just a threat assessment formula

This option aligns with the common definition of risk in the context of risk management, especially in information security and risk assessment frameworks. Risk is often quantified by considering the potential loss (or impact on assets) and the likelihood or probability of a particular event occurring. This approach helps in understanding, assessing, and prioritizing risks based on their potential impact and the likelihood of occurrence, enabling organizations to allocate resources and implement controls effectively.

risk = likelihood x impact (or damage incurred by the event. If you put a dollar value on the impact, then you can value the risk and in a simple way compare one risk factor to another)

The correct answer is B. "Asset loss times likelihood of event."

The formula is: risk = (threat x vulnerability x probability of occurrence x impact)/controls in place. https://stateofsecurity.com/formula-for-calculating-cyber-risk/#:~:text=The%20formula%20is%3A%20risk%20%3D%20(,impact)%2Fcontrols%20in%20place. Risk = Likelihood × Impact https://www.isaca.org/resources/isaca-journal/past-issues/2014/an-enhanced-risk-formula-for-software-security-vulnerabilities#:~:text=Risk%20is%20the%20combination%20of,%3A%20Risk%20%3D%20Likelihood%20%C3%97%20Impact. Best answer is D

Risk = Impact (i.e. Asset Cost Loss) X Likelihood of event (where likelihood is derived from Threat x Vulnerability / Control ) https://stateofsecurity.com/formula-for-calculating-cyber-risk/