Risk Level = Probability X Impact

Scenario 2: Richman Investments is concerned about the security of its customer data. Management has determined that the three primary risks the company faces in protecting the data are as follows:

Unauthorized access by an external party

Sabotage by an internal employee

Hardware failures

Richman has created scales for the probability and impact of risks as follows:

Probability: Low = 10%, Medium = 50%, and High = 100%

Impact: Low = 10, Medium = 50, and High = 100

After surveying key individuals in the company, Richman calculated the probability and impact of each risk, as shown in the table below. Based on the information given above, calculate the risk level for each risk:

Category	Probability	Impact	Risk Level
Unauthorized access by an external party	25	50	28%
Sabotage by an internal employee	75	100	88%
Hardware failures	30	25	38%

Which risk has the highest risk level?