Numerical Test Question 74 – Programme risk exposure

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Scenario

A programme estimates the financial exposure of each risk by multiplying the probability of occurrence by the maximum financial impact.

RiskProbabilityMaximum financial impact
A20%£120,000
B35%£80,000
C10%£250,000
D50%£40,000

Question

What is the programme’s total expected financial exposure?

  • A. £92,000
  • B. £95,000
  • C. £105,000
  • D. £97,000
Click to reveal the answer

Correct answer: D. £97,000

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