B is the way to go. If you don't know the likelihood and impact, how can you even call it a risk? I think the other options are just trying to sound fancy.
Hmm, I'm torn between B and C. Maybe I should ask the project manager to roll some dice and pick the answer randomly. That's how they usually make decisions anyway.
I think B is the correct answer. Risk level is all about the likelihood and impact of an event, not just adding up probabilities or some complicated formula.
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