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What is the probability of occurrence if the risk rating is 0.56 and the impact if the risk does occur is very high (0.80)?
What is the probability of occurrence if the risk rating is 0.56 and the impact if the risk does occur is very high (0.80)?

A. 0.45
B. 0.56
C. 0.70
D. 1.36
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C is the answer
I agree. C is the best answer.
What is C, George?
It appears to me that the question from George is related to the decision tree EVM calculation. In this case the impact as described with 0.8 and the answer C (0.7) does not make sense to me, as the impact and answer C must have a cost value, not just a pure percentage. George, can you clarify?
...
1 reply by George Lewis
Sep 08, 2017 10:27 AM
George Lewis
...
Hi Peter - I think it's clear now right?

Vincent did clarify... Risk rating is calculated with impact x probability, in this case 0.56 = 0.8 X "?"
Peter

Risk rating is calculated with impact x probability, in this case 0.56 = 0.8 X "?"

Probability is an %
Impact is often evaluated in range, I agree when you can a cost value should be identify.
I would also agree with "C" to be the answer
Sep 08, 2017 7:39 AM
Replying to Peter Ambrosy
...
It appears to me that the question from George is related to the decision tree EVM calculation. In this case the impact as described with 0.8 and the answer C (0.7) does not make sense to me, as the impact and answer C must have a cost value, not just a pure percentage. George, can you clarify?
Hi Peter - I think it's clear now right?

Vincent did clarify... Risk rating is calculated with impact x probability, in this case 0.56 = 0.8 X "?"
...
1 reply by Peter Ambrosy
Sep 08, 2017 11:57 AM
Peter Ambrosy
...
Yes, it is clear from the math point of view: EMV = Probability x Impact, but as also Vincent highlighted a kind of cost value should be behind. I guess, this was also the question from Stephane.
Sep 08, 2017 10:27 AM
Replying to George Lewis
...
Hi Peter - I think it's clear now right?

Vincent did clarify... Risk rating is calculated with impact x probability, in this case 0.56 = 0.8 X "?"
Yes, it is clear from the math point of view: EMV = Probability x Impact, but as also Vincent highlighted a kind of cost value should be behind. I guess, this was also the question from Stephane.
...
1 reply by Stéphane Parent
Sep 08, 2017 11:59 AM
Stéphane Parent
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Actually, Peter, I was just framing my answer in the form of a question, à la Jeopardy.

But I like your explanation better! :)
Sep 08, 2017 11:57 AM
Replying to Peter Ambrosy
...
Yes, it is clear from the math point of view: EMV = Probability x Impact, but as also Vincent highlighted a kind of cost value should be behind. I guess, this was also the question from Stephane.
Actually, Peter, I was just framing my answer in the form of a question, à la Jeopardy.

But I like your explanation better! :)

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