Risk Is the Probability That an Event or Action May

question 206

Multiple Choice

Risk is the probability that an event or action may adversely affect the organization or activity under review. In other words, risk is anything that can prevent an organization from achieving an objective. Major components of risk are as follows EXCEPT:

• A) Non- Compliance with the laws, rules and regulations
• B) An event or cause that can interfere with achieving the objective (e.g. What can go wrong?)
• C) A probability or likelihood of occurrence
• D) The negative consequences of not achieving the objective