Identify the false statement from the choices below:

The statement that primary losses will be greater than secondary losses is false because primary losses and secondary losses serve different functions in risk analysis and can vary significantly based on the context of a loss event.

Primary losses refer to the direct financial impacts of an incident, such as the immediate costs related to repairing damages or compensating affected parties. Secondary losses, on the other hand, can arise from peripheral consequences, such as decreased customer trust, reputational damage, or regulatory penalties that may result from the event.

In certain scenarios, secondary losses can exceed primary losses, especially in a business context where the long-term effects of a loss event, such as loss of customer loyalty or market share, can lead to more significant financial implications over time than the immediate aftermath of the event itself. This variability means that stating primary losses are always greater than secondary losses is not accurate.

The other statements illustrate valid concepts within the framework of risk management. Vulnerability assessment as a function of threat capability and resistance strength is a foundational aspect of risk analysis, reflecting how these factors interplay to shape vulnerability. Secondary losses and their relation to primary losses are well understood within stakeholder reactions to losses. Deriving loss event frequency from threat event frequency and vulnerability estimates aligns with established methodologies in risk analysis to