Which of the following aspects of risk management involves identifying the potential reputational and financial harm when an incident occurs?

Which of the following aspects of risk management involves identifying the potential reputational and financial harm when an incident occurs?
A . Impact analysis
B . Likelihood
C . Mitigation
D . Residual risk

View Answer

Answer: A

Explanation:

According to the web search results, impact analysis is the aspect of risk management that involves identifying the potential reputational and financial harm when an incident occurs. Impact analysis is the process of assessing the probabilities and consequences of risk events if they are realized1. Impact analysis helps to understand how project outcomes and objectives might change due to the impact of the risk event, and to measure the severity of the risk impact in terms of cost, schedule, quality, and other factors23. Impact analysis also helps to prioritize the risks and plan appropriate responses and controls23.

The other options are not correct. Likelihood is the aspect of risk management that involves estimating the probability or frequency of a risk event occurring23. Mitigation is the aspect of risk management that involves implementing actions or controls to reduce the likelihood or impact of a risk event23. Residual risk is the aspect of risk management that involves measuring the remaining risk after applying mitigation actions or controls23.

Reference: Risk Analysis: Definition, Examples and Methods – ProjectManager

Risk Assessment and Analysis Methods: Qualitative and Quantitative – ISACA

Systems Engineering: Risk Impact Assessment and Prioritization