What Are the Component Factors in the Assessment of Risk

question 85

Multiple Choice

What are the component factors in the assessment of risk?

• A) Estimated probable loss and the estimated frequency of occurrence
• B) Effectiveness of security measures and the value of the item involved
• C) Estimated frequency of occurrence and the nature of the asset
• D) Seriousness of the risk and the security measures employed

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Definitions:

Quality Costs

Represents the expenses associated with preventing, detecting, and correcting defective work in products or services.

Defect Rate

A measure of the frequency at which errors or flaws occur in a manufacturing process or a product.

Quality Performance

The degree to which a product or service meets customer expectations and industry standards.

Internal Failure Costs

Costs incurred to rectify defects found before the delivery of a product to the customer, part of quality control expenses.