ITIL 4 Foundation Practice Exam

Which of the following best describes the uncertainty of outcome in risk?

1. The likelihood of achieving a specific service level

2. The known impacts of past incidents on services

3. The probability of both positive and negative outcomes

4. The limitations of current service capabilities

The correct answer is: The probability of both positive and negative outcomes

The uncertainty of outcome in risk is best captured by considering both the possibility of positive and negative outcomes, which is accurately represented by the notion of probability. Essentially, risk encompasses not just the chances of something adverse occurring, but also the potential for beneficial outcomes. This dual nature is critical for effective risk management, as it encourages organizations to weigh potential losses against potential gains, fostering a more comprehensive understanding of what risks entail. In contrast, focusing solely on the likelihood of achieving a specific service level or the known impacts of past incidents does not cover the broad spectrum of what risk entails. The limitations of current service capabilities also fail to capture the idea of uncertainty in outcomes as it pertains more to constraints rather than the nature of the risks themselves. Therefore, understanding risk as the probability of varying outcomes—both good and bad—provides a holistic view that is essential for informed decision-making and strategic planning within the context of IT service management.