A new system is about to be developed. Which of the following functions has the highest level of risk?

To determine the function with the highest level of risk, it's important to assess both the likelihood of failure and its potential impact. Risk is typically calculated by multiplying the likelihood of failure (expressed as a percentage) by the impact value (the financial consequences of failure).

For the provided options, calculating the risk for each:

• For the first choice, the risk is calculated as 20% multiplied by £100,000, resulting in a risk value of £20,000.

• For the second choice, the risk is 10% multiplied by £150,000, resulting in a risk value of £15,000.

• For the third choice, the risk is 1% multiplied by £500,000, resulting in a risk value of £5,000.

• For the fourth choice, the risk is 2% multiplied by £200,000, resulting in a risk value of £4,000.

When comparing these calculated risk values, the first choice has the highest risk value at £20,000. This indicates that despite the lower financial impact of the failure (£100,000), the likelihood of failure is significantly higher (20%), leading to a greater overall risk. Therefore, the argument for this option being the one