In the Context of Failure Modes and Effects Analysis,which of the Following

question 4

Multiple Choice

In the context of failure modes and effects analysis,which of the following formulas is used to calculate the risk priority number?

• A) Risk priority number = total profits from new products/total expenditures
• B) Risk priority number = total profits from new products - total expenditures
• C) Risk priority number = successful projects/total project portfolio
• D) Risk priority number = severity × likelihood of occurrence × inability of controls to detect

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Definitions:

Triple Bottom Line

The Triple Bottom Line refers to a framework that evaluates a company's performance based on three factors: social, environmental, and financial.

Corporate Social Responsibility

Business practices involving initiatives that benefit society and the environment beyond profit-seeking motives.

Officers

In the context of corporations, officers are high-ranking individuals appointed to manage the day-to-day operations and make executive decisions on behalf of the company.

Shareholders

Individuals or entities that own shares in a corporation, thus having a stake in the company's equity and potentially influencing its governance.