When analysing security risks, why is it essential to consider both the likelihood and the impact of potential threats?

Considering both likelihood and impact is crucial for prioritizing which risks to address first. Reflect on how some threats may have a low likelihood but a high impact, requiring different mitigation strategies compared to high-likelihood, low-impact threats

Because only high-likelihood threats are significant

Because impact is the only important factor

To prioritize resources for mitigating risks effectively

To comply with legal requirements without practical benefits