Which of the following risks represents the highest level of risk to the project?

Which of the following risks represents the highest level of risk to the project?
A . Likelihood of failure = 1%, potential cost of impact = $1m.
B . Likelihood of failure = 10%, potential cost of impact = $500,000.
C . Likelihood of failure = 20%, potential cost of impact = $150,000.
D . Likelihood of failure = 5%, potential cost of impact = $500,000.

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Answer: B

Explanation:

Likelihood of failure = 10%, potential cost of impact = $500,000. The level of risk to the project can be calculated by multiplying the likelihood of failure by the potential cost of impact.

This gives us the following values for each option:

A: 1% x $1m = $10,000

B. 10% x $500,000 = $50,000

C. 20% x $150,000 = $30,000

D. 5% x $500,000 = $25,000