What is the correct formula for the risk equation?

The correct formula for the risk equation is rooted in understanding how various factors contribute to overall risk within the context of cybersecurity and risk management. In this case, the formula involves multiplying the threat by the likelihood of that threat occurring, added to the impact of the threat, and then factoring in the vulnerability of the system.

Risk assessment is fundamentally the product of the threat (something that can exploit a vulnerability), the likelihood of that threat successfully exploiting a vulnerability, and the potential impact of such an event. The equation recognizes that risk is not just a straightforward multiplication of threat and vulnerability; it also incorporates how likely the threat is to occur and the severity of its impact when it does.

This comprehensive approach allows management to evaluate risks more effectively by considering the multi-faceted nature of potential security breaches. By emphasizing the combination of these elements, organizations can prioritize their risk management efforts in a way that aligns with both likelihood and impact, ensuring a more strategic allocation of resources and safeguards.