Answer to Question #164355 in Management for BradleyB

Question

Discuss Step five (5), ‘likelihood determination’ of the risk assessment process and explain the likelihood levels.

Answer 1

Likelihood determination is a major step of the risk assessment process that assesses the possibility of a risk potential or threat occurring. In the risk environment, likelihood is determined by qualitative measurements, which are subjective in nature. Determination of likelihood is aided by analyzing information from threat and vulnerability identification and analysis of existing controls. Likelihood determination further guides into increasing safeguarding measures to lower likelihood and in determining total risk. Likelihood levels are classified through an ordinal scale: low, medium and high. A low level of likelihood is where an event is unlikely to occur or would cause trivial harm. A high level of likelihood is where a potential risk is very likely to occur or would cause major impact. A medium level of likelihood indicates a moderate chance of happening and lays in between high and low levels.