Which elements are included in a comprehensive risk assessment for a major decision?

• A. Schedule a meeting with stakeholders
• B. Focus only on cost
• C. Identify risks, probability, impact, mitigation, and contingency planning
• D. Ignore low-probability events

Answer: (C)

A comprehensive risk assessment for a major decision centers on identifying what could go wrong and then evaluating how likely each risk is and how serious its impact would be. From there, you plan how to reduce those risks and what you’d do if they materialize. This means listing risks, estimating their probability, assessing the potential effects, outlining mitigation measures to lower likelihood or severity, and creating contingency plans for residual risk. This approach helps you prioritize actions, allocate resources, and set up monitoring so you’re prepared for changes as the decision unfolds.

Scheduling a meeting with stakeholders is valuable for gathering input and alignment, but it doesn’t by itself evaluate risks or lay out risk-response steps. Focusing only on cost misses the broader picture—risk assessment should consider multiple dimensions, including likelihood and impact, not just price. Ignoring low-probability events leaves you exposed to surprises that can still be consequential; a thorough assessment includes those scenarios and develops contingency plans to handle them if they occur.