Which option BEST describes how the level of risk is determined?

The level of risk is determined by evaluating both the impact and the likelihood of an adverse event occurring. This approach ensures that both the severity of potential consequences and the probability of the event are considered. The impact assesses how serious the consequences would be if the event happened, while the likelihood evaluates how probable it is that the event will occur. This combination provides a comprehensive measure of risk, helping organizations prioritize their risk management efforts effectively​​.