Overall quantitative business risk is best expressed as what?

Overall quantitative business risk is best expressed as a product of likelihood and impact magnitude because this formula captures the essential components needed to assess risk effectively.

In risk assessment, "likelihood" refers to the probability that a specific threat will exploit a vulnerability, while "impact magnitude" measures the potential consequences or severity of that exploitation. By multiplying these two factors, organizations can quantify risk in a way that clearly demonstrates how different scenarios can affect the business's overall risk exposure. This approach allows for a more structured analysis and prioritization of risks, enabling decision-makers to allocate resources and implement mitigation strategies effectively.

Other options focus on only one aspect of risk instead of a comprehensive view. For example, evaluating just the magnitude of impact overlooks the necessary element of likelihood, while assessing only the likelihood neglects the potential severity of impacts. The collective judgment of the risk assessment team is valuable, but it may not provide a standardized or quantifiable method to express risk, which is essential for effective decision-making. Thus, the product of likelihood and impact magnitude provides a clear and quantifiable framework for understanding and managing overall quantitative business risk.