What is Risk?

Question 1

What is risk?

Answer 1

A thing (Bad thing that can happen)
A state of being (Risk of natural disasters)
A quantity (How much risk)

Question 2

What is risk in FAIR?

Answer 2

A quantity.

Question 3

Risk is…

Answer 3

A measurement of how much money an organization is likely to lose from a given scenario over a given
time-frame

Question 4

Risk measurement of future loss comes from

Answer 4

estimates of Loss Event Frequency and Loss Magnitude. (Future loss, typically in a year)

Question 5

Analyzing risk means…

Answer 5

Forecasting how much money the organization might lose from a scenario over a timeframe.

Question 6

Assumptions are

Answer 6

Unavoidable part of doing risk analysis.

Question 7

What do you have to identify in risk analysis?

Answer 7

Assumptions

Question 8

Bald tire example is

Answer 8

4 part example of assumptions

Question 9

Why is there no such thing as a risk?

Answer 9

Because risk is a quantity. (Scenario’s with associated amounts of risk)

Question 10

Why is “what are the risks?” the wrong question?

Answer 10

Because risk is a quantity.

Correct question: How much risk do we have from the scenario as described?

Question 11

Risk analysis is plagued by…

Answer 11

Unstated assumptions