Which two components PRIMARILY must be assessed in an effective risk analysis? 

Answer options:

A. Visibility and duration
B. Likelihood and impact
C. Probability and frequency
D. Financial impact and duration

B

The probability or likelihood of the event and the financial impact or magnitude of the event must be assessed first. Duration refers to the length of the event; it is important in order to assess impact but is secondary. Once the likelihood is determined, the frequency is also important to determine overall impact.