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Which two components PRIMARILY must be assessed in an effective risk analysis?
A. Visibility and duration
B. Likelihood and impact
C. Probability and frequency
D. Financial impact and duration
Correct Answer: B
Explanation/Reference:
Explanation:
The probability or likelihood of the event and the financial impact or magnitude of the event must be assessed first. Duration refers to the length of the event; it is important in order to assess impact but is secondary. Once the likelihood is determined, the frequency is also important to determine overall impact.
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