Steps Involved in Articulating Risks
Question
What are the steps that are involved in articulating risks? Each correct answer represents a complete solution.
Choose three.
Answers
Explanations
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A. B. C. D.ACD.
Following are the tasks that are involved in articulating risk: -> Communicate risk analysis results.
-> Report risk management activities and the state of compliance.
-> Interpret independent risk assessment findings.
-> Identify business opportunities.
The process of articulating risks involves identifying, analyzing, and communicating the risks to the appropriate stakeholders. Below are the three steps that are involved in articulating risks:
Identify Risks: The first step in articulating risks is to identify potential risks that can impact the organization's objectives. This step involves identifying threats and vulnerabilities that can cause harm or loss to the organization. It is essential to consider all possible sources of risks, including technology, people, processes, and the environment.
Analyze Risks: The second step is to analyze the identified risks to determine their likelihood and potential impact. This step involves assessing the probability of the risk occurring, the impact it can have on the organization, and the effectiveness of existing controls in mitigating the risk. This step helps in prioritizing the risks and determining the appropriate response.
Communicate and Report Risks: The third step is to communicate the results of the risk analysis and report risk management activities and the state of compliance. This step involves presenting the findings to the appropriate stakeholders, including management, board of directors, and external auditors. The communication should include the risk assessment methodology, risk management activities, and recommendations for improving the organization's risk management practices.
Therefore, options A and D are not correct as they are not related to the steps involved in articulating risks. Option B is also incorrect as it only addresses one of the steps involved in articulating risks, which is to identify the response to the identified risks. Option C is correct as it includes all the three steps involved in articulating risks, which are to communicate risk analysis results, report risk management activities, and the state of compliance, which are essential in managing and mitigating risks in an organization.
