1. What is Risk Calculation?

Risk calculation is a fundamental process in risk management that quantifies potential risks by considering threats, vulnerabilities, and their potential consequences. It helps organizations prioritize risks and allocate resources effectively.

2. How Does the Calculator Work?

The calculator uses the basic risk formula:

Where:

• \( Threat \) — The potential source of harm (scale)
• \( Vulnerability \) — The susceptibility to the threat (scale)
• \( Consequence \) — The potential impact if the threat occurs (scale)

Explanation: The formula multiplies these three factors to produce a dimensionless risk value that can be used for comparison and prioritization.

3. Importance of Risk Assessment

Details: Proper risk assessment is crucial for identifying potential hazards, evaluating their likelihood and impact, and implementing appropriate mitigation strategies.

4. Using the Calculator

Tips: Enter values for threat, vulnerability, and consequence on appropriate scales (typically 0-10 or similar). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What scales should be used for inputs?
A: Common scales are 1-5 or 1-10, with higher numbers indicating greater threat, vulnerability, or consequence.

Q2: How should the risk value be interpreted?
A: Higher values indicate greater risk. Organizations typically set thresholds for acceptable vs. unacceptable risk levels.

Q3: What are limitations of this simple model?
A: It doesn't account for complex interactions between factors or probability distributions. More sophisticated models may be needed for complex systems.

Q4: How often should risk assessments be performed?
A: Regularly, especially when new threats emerge, systems change, or after significant incidents.

Q5: Can this be used for all types of risk?
A: This basic formula works for many scenarios but may need adaptation for specific domains like financial or cybersecurity risk.