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A new system is about to be developed. Which of the following functions has the highest level of risk?
A. Likelihood of failure = 20%; impact value = J100,000
B. Likelihood of failure = 10%; impact value = J150,000
C. Likelihood of failure = 1%; impact value = J500,000
D. Likelihood of failure = 2%; impact value = J200,000
Correct Answer: A
Explanation/Reference:
Explanation:
In (B) the product of probability ? impact has the value ?15,000; in (C) the value is ?5,000 and in (D) it is ?4,000. The value of ?20,000 in (A) is therefore the highest.
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