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Question 21: A new system is about to be developed. Which of the following functions has the highest level
of risk?
A. Likelihood of failure = 20%; impact value = E100,000
B. Likelihood of failure = 10%; impact value = E150,000
C. Likelihood of failure = 1%; impact value = E500,000
D. Likelihood of failure = 2%; impact value = E200,000
Correct Answer: A
Explanation:
In (B) the product of probability x impact has the value E15,000; in (C) the value is E5,000 and in (D) it
is E4,000. The value of E20,000 in (A) is therefore the highest.
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