In a risk assessment exercise of a software implementation program, the business analyst (BA) has successfully computed the probability of occurrence (POC) and the cost of impact for each of the identified risks as follows:

Which of the following will have the highest negative impact to value?
Correct Answer: B
Explanation
In the context of risk assessment, the impact of a risk is often calculated by multiplying the Probability of Occurrence (POC) with the Cost of Impact. For each risk in this scenario:
Natural disasters: 0.2 * 15,000 = 3,000
Power surges: 0.5 * 20,000 = 10,000
Human errors: 0.9 * 3,000 = 2,700
System security: 0.4 *16,000 =6,400
Power surges have the highest negative impact to value at $10,000.
References: The calculation is based on standard risk assessment practices which involve evaluating both the probability and impact of risks to prioritize them effectively; as per Business Analysis Professional (CBAP) learning documents or resources