How is the risk calculated according to the risk equation?

The risk is calculated using the equation that incorporates both the probability of an event occurring and its potential consequence if it does occur. By multiplying the probability by the consequence, this approach provides a quantifiable measure of the risk level associated with a threat. This formulation is essential in risk assessment because it helps security professionals prioritize which risks need more immediate attention based on their likelihood and severity.

In security contexts, understanding this relationship allows for better resource allocation and strategic planning to mitigate potential threats. By focusing on both the likelihood and the seriousness of the worst-case scenario, organizations can implement measures that effectively reduce overall risk.