SEP3704
ASSIGNMENT 2
DUE DATE: 15 APRIL 2025
, (Read the instructions for Assignment 02 before you start answering the questions)
Please ensure that you submit your assessment ONLY in PDF format (one file).
SECTION A
QUESTION 1
For practical purposes probability is divided up into five intervals to calculate risk
factors. Explain the five (5) intervals of probability.
According to page 37 SEP3704/1, probability is divided into five (5) intervals for practical use
when calculating risk factors. These intervals help organisations to understand how likely it is
that a risk or loss will happen. They are as follows:
Never
This means that there is no chance of the risk happening. For example, if a company does
not own any computers, then it cannot suffer the loss of computers due to theft.
Improbable
This means that the risk is very unlikely, but it is not impossible. For example, if a business
does not use trains to move its goods, it is very unlikely (but still possible) that it will lose
goods in a train accident.
Probable
This means that there is a 50:50 chance that the risk will happen. It may or may not happen.
For example, many businesses may experience theft of company property, but it is not
guaranteed. The chances are equal that the risk will happen or not.
Highly Probable
ASSIGNMENT 2
DUE DATE: 15 APRIL 2025
, (Read the instructions for Assignment 02 before you start answering the questions)
Please ensure that you submit your assessment ONLY in PDF format (one file).
SECTION A
QUESTION 1
For practical purposes probability is divided up into five intervals to calculate risk
factors. Explain the five (5) intervals of probability.
According to page 37 SEP3704/1, probability is divided into five (5) intervals for practical use
when calculating risk factors. These intervals help organisations to understand how likely it is
that a risk or loss will happen. They are as follows:
Never
This means that there is no chance of the risk happening. For example, if a company does
not own any computers, then it cannot suffer the loss of computers due to theft.
Improbable
This means that the risk is very unlikely, but it is not impossible. For example, if a business
does not use trains to move its goods, it is very unlikely (but still possible) that it will lose
goods in a train accident.
Probable
This means that there is a 50:50 chance that the risk will happen. It may or may not happen.
For example, many businesses may experience theft of company property, but it is not
guaranteed. The chances are equal that the risk will happen or not.
Highly Probable
