Which term describes the numerical likelihood of an event used to quantify risk?

Which term describes the numerical likelihood of an event used to quantify risk?

• A. Feasibility
• B. Possibility
• C. Probability
• D. Risk measurement

Answer: (C)

Probability is the numerical measure of how likely an event is to occur, and it’s used to quantify risk by attaching a specific likelihood to potential outcomes. It expresses risk on a scale from 0 to 1 (or 0% to 100%), where 0 means impossible and 1 means certain. In risk work, you often combine probability with impact to gauge overall risk exposure, such as assessing the likelihood of a claim and its potential cost. Feasibility notes whether something can be done at all, without assigning a specific likelihood. Possibility is a broad notion that something could happen but doesn’t provide a precise probability. Risk measurement encompasses methods to quantify risk more generally, including how you determine and interpret the probability of events.

Probability is the numerical measure of how likely an event is to occur, and it’s used to quantify risk by attaching a specific likelihood to potential outcomes. It expresses risk on a scale from 0 to 1 (or 0% to 100%), where 0 means impossible and 1 means certain. In risk work, you often combine probability with impact to gauge overall risk exposure, such as assessing the likelihood of a claim and its potential cost. Feasibility notes whether something can be done at all, without assigning a specific likelihood. Possibility is a broad notion that something could happen but doesn’t provide a precise probability. Risk measurement encompasses methods to quantify risk more generally, including how you determine and interpret the probability of events.