Tim is responsible for contingency planning at his company. Which of the
following will allow Tim to focus risk management efforts on identified risks?
A.
A risk assessment
B.
Residual risks
C.
Security controls
D.
Business units
Explanation:
The risk assessment is critical because it enables the person
responsible for contingency planning to focus risk management efforts and resources
in a prioritized manner only on the identified risks.
Risk assessment is the determination of quantitative or qualitative estimate of risk related to a well-defined situation and a recognized threat (also called hazard). Quantitative risk assessment requires calculations of two components of risk (R): the magnitude of the potential loss (L), and the probability (p) that the loss will occur. Acceptable risk is a risk that is understood and tolerated usually because the cost or difficulty of implementing an effective countermeasure for the associated vulnerability exceeds the expectation of loss.[1] “Health risk assessment” includes variations, such as risk as the type and severity of response, with or without a probabilistic context.