Which of the following is the order of priority for risk mitigation from highest to lowest?

An organization has the following risk mitigation policy:

Risks with a probability of 95% or greater will be addressed before all others regardless of the impact.

All other prioritization will be based on risk value.

The organization has identified the following risks:

Which of the following is the order of priority for risk mitigation from highest to lowest?
A . A, B, D, C
B . A, B, C, D
C . D, A, B, C
D . D, A, C, B

View Answer

Answer: D

Explanation:

According to the risk mitigation policy, risks with a probability of 95% or greater will be addressed first, regardless of the impact. Therefore, risk D is the highest priority, as it has a probability of 95% and an impact of $100,000. The next priority is risk A, which has a probability of 90% and an impact of $200,000. The remaining risks will be prioritized based on their risk value, which is calculated by multiplying the probability and the impact. Risk C has a risk value of $40,000 (80% x $50,000), while risk B has a risk value of $30,000 (60% x $50,000). Therefore, risk C is higher priority than risk B.