Which of the following matrices is used to specify risk thresholds?

Which of the following matrices is used to specify risk thresholds?
A . Risk indicator matrix
B . Impact matrix
C . Risk scenario matrix
D . Probability matrix

Answer: A

Explanation:

Risk indicators are metrics used to indicate risk thresholds, i.e., it gives indication when a risk level is approaching a high or unacceptable level of risk. The main objective of a risk indicator is to ensure tracking and reporting mechanisms that alert staff about the potential risks.

Incorrect Answers:

B, D: Estimation of risk’s consequence and priority for awareness is conducted by using probability and impact matrix. These matrices specify the mixture of probability and impact that directs to rating the risks as low, moderate, or high priority.

C: A risk scenario is a description of an event that can lay an impact on business, when and if it would occur.

Some examples of risk scenario are of:

– Having a major hardware failure

– Failed disaster recovery planning (DRP)

– Major software failure