IIBA Certified Business Analysis Professional CBAP Question # 103 Topic 11 Discussion

 In the context of risk assessment, the impact of a risk is often calculated by multiplying the Probability of Occurrence (POC) with the Cost of Impact. For each risk in this scenario:

Natural disasters: 0.2 * 15,000 = 3,000

Power surges: 0.5 * 20,000 = 10,000

Human errors: 0.9 * 3,000 = 2,700

System security: 0.4 *16,000 =6,400

Power surges have the highest negative impact to value at $10,000.

References: The calculation is based on standard risk assessment practices which involve evaluating both the probability and impact of risks to prioritize them effectively; as per Business Analysis Professional (CBAP) learning documents or resources