Choose the best definition of impact from the list below.
A) Prioritizes risks by ranking their likelihood of occurring and the potential impact on the company
B) It is the estimated probability of a risk occurrence.
C) It is the estimation of damage that could be caused if the risk occurs.
D) It is an estimation of the loss of goodwill.

Question

Quizplus · Accepted Answer

Impact, in the context of risk management, refers to the estimation of damage or negative effects that could result if a particular risk materializes. It assesses the severity of the consequences associated with a risk event.

Choose the Best Definition of Impact from the List Below