What does a high likelihood and impact assessment typically lead to in risk classification?

A high likelihood and impact assessment typically leads to an extremely high-risk classification because it indicates that a risk event is not only probable to occur but also has significant consequences if it does. In enterprise architecture and risk management, this categorization is crucial for prioritizing resources and developing strategies for risk mitigation.

When both the likelihood and impact are high, organizations understand that they face potentially severe ramifications that could affect their operations, finances, reputation, or compliance with regulations. As a result, identifying these risks as extremely high allows organizations to allocate appropriate attention and resources to address these vulnerabilities effectively. It emphasizes the need for proactive planning to minimize the potential negative outcomes associated with such risks.