A risk index combines probability with which factor to produce a composite score?

A risk index combines probability with which factor to produce a composite score?

• A. Consequence
• B. Data lineage
• C. Building height
• D. Market share

Answer: (A)

Risk is often quantified by combining how likely something is with how bad it would be if it happens. The standard approach uses probability times consequence (impact). The consequence represents the magnitude of potential damage, costs, or harm to people, property, or the environment. When you multiply likelihood by consequence, you get a single composite score that lets you compare and prioritize different risks. The other factors listed don’t fit this general framework: data lineage is about tracking data origin, building height can influence certain hazard analyses but isn’t the generic risk-consequence component, and market share is a business metric rather than a measure of potential impact.

Risk is often quantified by combining how likely something is with how bad it would be if it happens. The standard approach uses probability times consequence (impact). The consequence represents the magnitude of potential damage, costs, or harm to people, property, or the environment. When you multiply likelihood by consequence, you get a single composite score that lets you compare and prioritize different risks. The other factors listed don’t fit this general framework: data lineage is about tracking data origin, building height can influence certain hazard analyses but isn’t the generic risk-consequence component, and market share is a business metric rather than a measure of potential impact.