Which of the following is part of the assessment scale for risk determination?

The assessment scale for risk determination involves evaluating both likelihood and impact, making them crucial components in understanding potential risks. Likelihood refers to the probability of a risk event occurring, while impact assesses the consequences or severity of the event if it does occur. Together, these two factors provide a comprehensive view of the risk landscape, helping organizations prioritize risks based on their potential effects on operations or objectives. By analyzing both likelihood and impact, organizations can formulate effective strategies for risk mitigation and resource allocation, ensuring a balanced approach to risk management. Using only one of these factors, such as likelihood or impact alone, would provide an incomplete risk assessment, leading to inadequate decision-making.