When conducting a risk assessment in support of a new regulatory requirement, the IT risk committee should FIRST consider the:
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A. B. C. D.D.
When conducting a risk assessment in support of a new regulatory requirement, the IT risk committee should first consider the risk profile of the enterprise (option D).
Here's why:
Risk assessment is a process of identifying, analyzing, and evaluating potential risks that could affect an organization's ability to achieve its objectives. A risk assessment is a critical component of effective risk management and is used to inform risk treatment decisions.
When a new regulatory requirement is introduced, the first step in conducting a risk assessment is to understand the risk profile of the enterprise. The risk profile of an enterprise includes its unique business processes, information assets, technology infrastructure, and the regulatory environment in which it operates.
Understanding the risk profile of the enterprise helps the IT risk committee to identify the areas of highest risk and prioritize their risk management efforts accordingly. It also helps the committee to understand the organization's risk appetite and tolerance levels, which will inform risk treatment decisions.
Once the risk profile of the enterprise has been established, the IT risk committee can then consider the other factors listed in the answer options.
Option A: Cost burden to achieve compliance After the risk profile has been established, the IT risk committee can assess the cost of achieving compliance with the new regulatory requirement. This is an important consideration, but it should not be the first one. It is essential to understand the level of risk that the organization faces before making any decisions about how to mitigate it.
Option B: Disruption to normal business operations Disruption to normal business operations is another important consideration, but it should come after the risk profile has been established. Once the level of risk has been identified, the IT risk committee can consider the potential impact of risk treatment strategies on the organization's operations.
Option C: Readiness of IT systems to address the risk The readiness of IT systems to address the risk is also an important consideration but should be addressed after the risk profile has been established. Once the IT risk committee understands the level of risk, they can assess the current state of their IT systems and identify any gaps that need to be addressed to achieve compliance with the new regulatory requirement.
In summary, when conducting a risk assessment in support of a new regulatory requirement, the IT risk committee should first consider the risk profile of the enterprise. This helps to identify the areas of highest risk and prioritize risk management efforts accordingly. Once the risk profile has been established, the committee can then consider the other factors listed in the answer options.