Differentiate between likelihood and severity

Question

Assignment:

1. Differentiate between ECONOMIC RISK and LEGAL RISK (how are they similar and different?)

2. Differentiate between LIKELIHOOD and SEVERITY (how are they similar and different?)

3. When it comes to RISK, what do the four OPTIONS look like?

1. ACCEPT (what is someone doing if they accept the risk?)
2. AVOID (what is someone doing if they avoid the risk?)
3. REDUCE (what is someone doing if they reduce the risk?)
4. TRANSFER (what is someone doing if they transfer the risk?)