Which of the following scoring metrics suggests a high risk position according to the Common Sense Scoring Scale?

The Common Sense Scoring Scale is a framework used to evaluate business risks by assigning scores that reflect the degree of risk associated with a particular position. A score of 50% or less indicates a high risk position because it suggests that the business has not effectively mitigated the risks it faces, which may include operational, financial, legal, or market risks.

A score at this level typically reveals vulnerabilities in key areas such as management practices, financial health, or market competitiveness. Stakeholders such as investors, creditors, and advisors may see a score below 50% as a signal that the business requires significant improvements in its risk management strategies to enhance stability and reduce exposure to potential adverse outcomes.

As the scores increase, the overall risk position tends to improve, reflecting better risk management practices and a more stable business environment. However, scores above 50% indicate varying degrees of moderate to low risk.