Which two components are used to calculate the inherent risk score?

Which two components are used to calculate the inherent risk score?

• A. SLE and ARO
• B. Impact and SLE
• C. Impact and Likelihood
• D. Likelihood and ALE

Answer: (C)

Inherent risk score is determined by combining how severe the potential impact would be with how likely the event is to occur. This means you look at the consequence if the risk materializes (impact) and the probability of that materializing (likelihood), and you typically multiply them to get a single risk score. That’s why the two components are impact and likelihood. This approach focuses on the potential damage before any controls are applied, which is different from using SLE and ARO (which calculate ALE: Annualized Loss Expectancy) or other monetary metrics. So impact and likelihood are the right pair for inherent risk scoring.

Inherent risk score is determined by combining how severe the potential impact would be with how likely the event is to occur. This means you look at the consequence if the risk materializes (impact) and the probability of that materializing (likelihood), and you typically multiply them to get a single risk score. That’s why the two components are impact and likelihood.

This approach focuses on the potential damage before any controls are applied, which is different from using SLE and ARO (which calculate ALE: Annualized Loss Expectancy) or other monetary metrics. So impact and likelihood are the right pair for inherent risk scoring.