Which of the following are the MOST important risk components that must be communicated among all the stakeholders? Each correct answer represents a part of the solution.
Choose three.
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A. B. C. D.BCD.
The broad array of information and the major types of IT risk information that should be communicated are as follows: -> Expectations from risk management: They include risk strategy, policies, procedures, awareness training, uninterrupted reinforcement of principles, etc.
This essential communication drives all subsequent efforts on risk management and sets the overall expectations from risk management.
-> Current risk management capability: This allows monitoring of the status of the risk management engine in the enterprise.
It is a key indicator for effective risk management and has predictive value for how well the enterprise is managing risk and reducing exposure.
-> Status with regard to IT risk: This describes the actual status with regard to IT risk including information of risk profile of the enterprise, Key risk indicators (KRIs) to support management reporting on risk, event-loss data, root cause of loss events and options to mitigate risk.
Incorrect Answers: A: Risk response is only communicated to some of the stakeholders not all, as it is irrelevant for them.
It is not communicated to the stakeholders of the project like project sponsors, etc.
Effective communication of risk components is a critical aspect of risk management as it ensures that all stakeholders are aware of the risks associated with a particular project or system. When stakeholders are aware of the risks, they can make informed decisions and take appropriate actions to manage those risks.
The most important risk components that should be communicated among all the stakeholders are:
B. Expectations from risk management: It is essential to communicate the expectations from the risk management process to ensure that everyone involved understands what is expected of them. This includes the objectives, goals, and outcomes that are expected from the risk management process. By communicating expectations, stakeholders can align their efforts with the goals of the project and ensure that everyone is working towards the same objectives.
C. Current risk management capability: The current risk management capability refers to the ability of the organization to identify, assess, and manage risks effectively. It is crucial to communicate the current risk management capability to ensure that all stakeholders are aware of the strengths and weaknesses of the risk management process. By doing so, stakeholders can work together to address any gaps and improve the overall risk management capability.
D. Status of risk with regard to IT risk: It is essential to communicate the status of the risk with regard to IT risk to ensure that all stakeholders are aware of the risks associated with the project or system's IT infrastructure. This includes the risks associated with the hardware, software, and network components of the IT system. By communicating the IT risk status, stakeholders can take appropriate measures to address any vulnerabilities and ensure that the IT infrastructure is secure and reliable.
A. Various risk response used in the project: While it is important to communicate the various risk response options available, it may not be the most critical risk component to be communicated among all the stakeholders. This is because risk response options can vary depending on the specific risks and the organization's risk appetite. Therefore, it is more important to focus on communicating the expectations, current risk management capability, and status of risk with regard to IT risk.