Which of the following represents the least critical risk based on probability and impact?

To determine the least critical risk based on probability and impact, a common method is to calculate the risk exposure, which is the product of probability and impact. This helps to quantify the risk and allows for comparison between different risks.

For choice A, the risk exposure is calculated as follows:

• Probability: 50% (or 0.50)
• Impact: $90,000
• Risk Exposure = Probability * Impact = 0.50 * $90,000 = $45,000

Now, applying the same calculation to the other choices:

For choice B:

• Probability: 75% (or 0.75)
• Impact: $100,000
• Risk Exposure = 0.75 * $100,000 = $75,000

For choice C:

• Probability: 25% (or 0.25)
• Impact: $200,000
• Risk Exposure = 0.25 * $200,000 = $50,000

For choice D:

• Probability: 40% (or 0.40)
• Impact: $160,000
• Risk Exposure = 0.40 * $160,000 = $64,000

By comparing the risk exposures calculated