According to the definition, Risk in Acquisition Management is calculated by which formula?

The concept of risk in Acquisition Management is typically defined as the product of the probability of an event occurring and the consequences of that event if it does occur. This understanding is rooted in risk management practices where assessing risks involves determining how likely an adverse event is to happen and what the potential impact of that event would be.

By using the formula of probability multiplied by consequences, one can effectively quantify the level of risk associated with specific actions or decisions. This approach allows managers to prioritize risks based on their magnitude and likelihood, facilitating more informed decision-making and resource allocation to mitigate risks appropriately.

The other options, while they may touch on various aspects of risk or decision-making, do not accurately reflect the standardized formula used in risk assessment within acquisition management. For example, combining likelihood with consequences directly might not provide the same clarity in quantifying risk as the more commonly accepted formula of probability multiplied by consequences.