Discuss The Institute Of Asset Management IAM-Certificate Exam Topic 3 Question 14

When assessing risks, which of the following is a valid statement?

ARisks can be assessed by calculating the product of their probability and frequency

BRisks can be assessed by calculating the product of their consequences and occurrence

CRisks can be assessed by calculating the product of their Mean Time Between Failure and Mean Time To Repair

DRisks can be assessed by calculating the product of their possibility and Mean Time Between Failure

ERisks can be assessed by calculating the product of their probability and consequences

Suggested Answer: E

Again, the recognized method for risk evaluation aligns with ISO 31000 and ISO 55000:

Risk = Probability Consequence

This is used across risk matrices, risk registers, and decision frameworks.

Exact Extract from IAM -- Risk Management in Asset Management:

''The basic formula for quantifying risk is: Risk = Likelihood Consequence.''

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17 comments · newest first

Moon 4 days ago

I was torn between A and E, but E feels more comprehensive.

Elly 9 days ago

I agree, Alice. E shows the real impact of risks.

Ulysses 14 days ago

I think E is the best choice. Probability and consequences make sense.

Garry 19 days ago

How can you assess risks with just frequency? Sounds too simple!

Johnetta 24 days ago

C is interesting too, but I still lean towards E.

Tori 30 days ago

Wait, are we really using "possibility" in D? That seems off.

Geraldo 1 month ago

Nah, I disagree. A sounds more accurate to me.

Wava 1 month ago

I think E is the right choice! Probability and consequences make sense.

Dalene 2 months ago

C is interesting, but I think it complicates things too much.

Vincent 2 months ago

Wait, are we sure about E? Sounds too simple.

Lonny 2 months ago

Totally agree with E, it makes the most sense.

Linette 2 months ago

I thought A was valid too, but I guess not!

Aliza 2 months ago

E is the correct choice! Probability and consequences matter.

Dannette 2 months ago

I remember that risks are often evaluated using probability, but I can't remember if it's specifically with consequences or something else.

Lynda 3 months ago

I feel like we had a practice question that mentioned Mean Time Between Failure, but I can't recall if it was related to risk assessment.

Junita 3 months ago

I'm not entirely sure, but I remember something about assessing risks using frequency and consequences. Maybe it's option B?

Mollie 3 months ago

I think option E sounds familiar because we talked about probability and consequences in our last review session.

The Institute of Asset Management IAM-Certificate Exam - Topic 3 Question 14 Discussion