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Which of the following is defined as "a measure of the desirable effect of uncertainty on objectives?
Suggested Answer: A
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Risk is defined as a measure of the desirable effect of uncertainty on objectives. According to the ISO 31000 standard, risk is 'the effect of uncertainty on objectives' which can be either positive (opportunity) or negative (threat). This definition encompasses the uncertainty that can impact the achievement of goals and objectives. It highlights that risk is not just about potential losses but also about potential gains that come from taking risks. Reference:
ISO 31000:2018 - Risk management -- Guidelines
NIST SP 800-30 Rev. 1 - Guide for Conducting Risk Assessments
21 comments · newest first
MA
Ma
2 days ago
But what about C) Reward? Isn't that also about positive outcomes?
FE
Fernanda
7 days ago
A) Risk makes sense. Uncertainty can lead to gains.
JA
Janae
12 days ago
I agree, but isn't it more about the potential outcomes?
JI
Jin
17 days ago
I think it's A) Risk.
GA
Gabriele
23 days ago
I just hope I remember this for the exam!
ER
Eric
28 days ago
Yeah, compliance is more about rules.
RA
Rana
1 month ago
Compliance doesn't fit here at all.
AS
Ashton
1 month ago
Exactly, risk measures the potential outcomes.
GA
Gabriele
1 month ago
True, but risk is more about uncertainty.
ER
Eric
2 months ago
But what about C) Reward? It can also be a desirable effect.
RA
Rana
2 months ago
I feel the same, uncertainty is linked to risk.
AS
Ashton
2 months ago
I think it's A) Risk.
AN
Angelica
2 months ago
Reward could fit too, but I lean towards risk.
RE
Remedios
2 months ago
I thought it was more about compliance, not risk.
PR
Precious
2 months ago
Wait, is it really just about uncertainty?
GE
Georgene
3 months ago
Totally agree, risk is all about uncertainty!
AI
Aileen
3 months ago
It's definitely A) Risk.
GE
Gertude
3 months ago
This reminds me of a practice question we did on risk and reward. I think the answer is A) Risk, but I need to double-check my notes.
EM
Emile
3 months ago
I’m a bit confused here. I thought compliance was more about following rules, but maybe it relates to risk too?
FR
Freeman
3 months ago
I remember discussing how risk can have both positive and negative effects on objectives, so I’m leaning towards A) Risk.
ST
Stefanie
4 months ago
I think this question is about risk, but I'm not entirely sure. It feels like something we covered in class.