US CMA Part 2 · Chapter 7 · Question 9 of 15
In a risk heat map that plots likelihood against impact, which risks should generally receive the highest priority for management attention?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Risks with both high likelihood and high impact
Explanation
A heat map shows each risk's assessed likelihood and impact. Those in the high-likelihood, high-impact zone pose the greatest threat to objectives and are prioritized for response. Low-impact frequent risks may be handled through routine controls, while low-likelihood, high-impact risks often call for contingency plans or insurance.
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