Steps for Effective Communication of Risk Analysis Results | CRISC Exam

ABD.

The result of risk analysis process is being communicated to relevant stakeholders.

The steps that are involved in communication are: -> The results should be reported in terms and formats that are useful to support business decisions.

-> Coordinate additional risk analysis activity as required by decision makers, like report rejection and scope adjustment -> Communicate the risk-return context clearly, which include probabilities of loss and/or gain, ranges, and confidence levels (if possible) that enable management to balance risk-return.

-> Identify the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process.

-> Provide decision makers with an understanding of worst-case and most probable scenarios, due diligence exposures and significant reputation, legal or regulatory considerations.

Incorrect Answers: C: Communicate the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process, for effective communication.

Only negative impacts are not considered alone.

Effective communication of the risk analysis results is critical to ensure that relevant stakeholders can make informed decisions. This involves presenting the results in a clear and concise manner that is easily understood by the intended audience. The following are the steps that ensure effective communication of the risk analysis results to relevant stakeholders:

1. The results should be reported in terms and formats that are useful to support business decisions: This means that the results should be presented in a way that is relevant and meaningful to the stakeholders. For example, financial stakeholders may be interested in the potential financial impact of the risk analysis results, while operational stakeholders may be interested in the impact on business processes.

2. Provide decision makers with an understanding of worst-case and most probable scenarios, due diligence exposures and significant reputation, legal or regulatory considerations: It is essential to provide decision-makers with a clear understanding of the potential impact of the risk analysis results. This includes worst-case and most probable scenarios, due diligence exposures, and significant reputation, legal, or regulatory considerations.

3. Communicate the risk-return context clearly: Decision-makers should have a clear understanding of the risk-return context of the risk analysis results. This means that they should be informed of the potential risks and benefits associated with taking a particular course of action.

It is essential to note that communicating the negative impacts of the events only may not be sufficient. Stakeholders should be presented with a complete picture of the risks and benefits associated with the risk analysis results to make informed decisions.