CIPS Exam L3M3 Topic 1 Question 4 Discussion

Actual exam question for CIPS's L3M3 exam

Question #: 4
Topic #: 1

[All L3M3 Questions]

Which two of the following constitute part of a common risk assessment or risk evaluation formula?

AContingency

BLikelihood

CImpact

DPrevention

Show Suggested Answer

Suggested Answer: B, C

What is the likelihood of an event occurring?

What will be the impact of that event occurring?

This is the basis of almost all modern risk management.

CIPS has good content at Advanced Diploma level on the subject of Risk Management, and I have prepared tests for the two subjects in this area. :)

Sadgrove's book on business risk, in my view, is excellent; and NN Taleb's work (eg 'Antifragile') on risk, although difficult is, in my opinion, fascinating.

by Dorothy at Mar 19, 2024, 08:04 PM

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Anika

5 months ago

I believe D) Prevention is not part of the common risk assessment formula.

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Dorcas

5 months ago

I also think A) Contingency is important to consider in risk evaluation.

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Elza

5 months ago

I agree with Eleonora, they are key factors in risk assessment.

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Eleonora

5 months ago

I think the answer is B) Likelihood and C) Impact.

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Meaghan

5 months ago

That's true, having a plan B and measures to prevent risks are essential too.

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Dierdre

6 months ago

Contingency and Prevention are also important, we can't ignore those.

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Dustin

6 months ago

I agree, those two factors are crucial in determining the level of risk.

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Meaghan

6 months ago

I think likelihood and Impact are part of the risk assessment formula.

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