Comprehensive Risk Analysis: Probability, Vulnerability, and Liability

This report provides an analysis of risk assessment, focusing on the probability of occurrence and its significance in identifying and mitigating risks. It defines vulnerability in relation to system security, highlighting potential liabilities and non-financial impacts such as loss of goodwill and employee morale. The report also includes a critical review of student responses, evaluating their understanding of these key concepts. The document concludes with references to support the analysis, making it a comprehensive resource for understanding risk management principles. Desklib provides a platform for students to access past papers and solved assignments for further study.

Running header: Management 1
Management
Students Name
Institutional Affiliation

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Probability of occurrence and its significance to risk assessment.
Probability of occurrence refers to the quantitative or numerical estimate on the
likelihood of a specific risk or hazard to occur either based on similar events or historical
occurrences (American Chemical Society, 2019). Probability of occurrence can either be
expressed in a rating or percentage format, and three specific methods are used to estimate the
probability or likelihood for risk assessments. They include; predictive techniques, expert
opinions, and historical data. Besides, risk assessment is dependent on the environment.
Therefore, in case there is a change in the environment, the probability of occurrence may also
change.
Probability of occurrence is a crucial tool in risk assessment since it provides a
comprehensive differentiation of risks (Kavlock et al., 2018). Probability of occurrence is
significant in risk assessment due to various reasons. One, it defines the probability of
occurrence. Therefore, better decisions can be made in regards to a risk/hazard. For example, it
helps in establishing a confidence level among members of a team specifically in the execution
of a project. Two, it helps define high-risk areas thereby being able to develop risk mitigation
strategies. Once the probability of the occurrence of a risk is identified, mitigation plans can be
developed and also analyzed for future changes of the risk. Lastly, the probability of occurrence
is crucial in identifying critical knowledge gaps, particularly in projects. Therefore, determining
the probability of success of a particular project is easier.
Vulnerabilities as it relates to a system.
Vulnerability refers to a weakness in a system that can be employed to negatively impact
the integrity, confidentially or availability of data in a system (LeMay, Scarfone, & Mell, 2012).
It can also be defined as a flaw in a system that exposes a system to attacks and threats.
Information security professionals are always on the lookout to reduce vulnerabilities in systems,
therefore, reducing the options for malicious users to gain access to confidential information.
Vulnerabilities may take different forms including; software flaws, software feature misuse, and
security configuration issues.
No system can be a hundred percent secure since every system may have a vulnerability
(LeMay, Scarfone, & Mell, 2012). For example, a system may not specifically have any known

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software flaws. However, software feature misuse and security configuration issues may always
be present. Therefore, security and information professionals should always stay
updated/informed about the current vulnerabilities so as to seek better strategies to protect
against them (Techopedia, 2019).
Potential liability and non-financial impact.
Potential liability refers to the financial obligation whereby an individual or company
may be legally obliged to pay for damages from a lawsuit, payment for services or situations that
require compensation (Finley, 2015). The following example illustrates what potential liability
means. When a company builds a swimming pool for its employees in which children from the
neighborhood can access with no restriction or blockage, and the children are harmed in one way
or another, the company can be said to be potentially liable. On the hand, non-financial impact
refers to negative impacts that do not involve monetary value within an organization, institution
or individual (Yousaf, Latif, Aslam, & Saddiqui, 2014). For example, loss of goodwill,
reputation, efficiency, customer confidence, competitive edge, employee morale or new
government regulations.
Student Response: 1st student.
On the 1st question, the student explains in detail what risk assessment means. However, I
believe he/she misses on the question since the question particularly asks on the probability of
occurrence and its significance to risk assessment. On the 2nd question, the student also misses on
defining what vulnerabilities in relation to a system. Therefore, missing on the requirements of
the question. On 3rd question, the student excellently explains potential liability however, he/she
misses on non-financial impact and rather speaks about non-financial criteria which is not part of
the question.
Student Response: 2nd student.
On the 1st question, the student clearly outlines probability of occurrence and its
significance to risk assessment. He/she points out the importance of risk assessment in mitigating
risks which I particularly agree with. On the 2nd question, the student addresses vulnerabilities by

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using examples hence making it clearer and more understandable to the reader. On the 3rd
question, I believe the student misses on the question since there is no clear definition of what
potential liability or non-financial means.

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References
American Chemical Society. (2019). Risk Rating & Assessment. Retrieved from
https://www.acs.org/content/acs/en/about/governance/committees/chemicalsafety/hazard-
assessment/fundamentals/risk-assessment.html
Finley, P. E. (2015). Bringing Down the House: The Regulation and Potential Liability of
Induced Earthquakes. LSU J. Energy L. & Resources, 4, 111.
Kavlock, R. J., Bahadori, T., Barton-Maclaren, T. S., Gwinn, M. R., Rasenberg, M., & Thomas,
R. S. (2018). Accelerating the pace of chemical risk assessment. Chemical research in
toxicology, 31(5), 287-290.
LeMay, E., Scarfone, K., & Mell, P. (2012). Vulnerabilities. Retrieved from
https://developer.mozilla.org/en-US/docs/Web/Security/Information_Security_Basics/
Vulnerabilities
Techopedia. (2019). What is Vulnerability? - Definition from Techopedia. Retrieved from
https://www.techopedia.com/definition/13484/vulnerability
Yousaf, S., Latif, M., Aslam, S., & Saddiqui, A. (2014). Impact of financial and non-financial
rewards on employee motivation. Middle-East journal of scientific research, 21(10),
1776-1786.