Mitigating Risk: Choosing the Most Appropriate Response | CRISC Exam
Question
Participants in a risk workshop have become focused on the financial cost to mitigate risk rather than choosing the most appropriate response.
Which of the following is the BEST way to address this type of issue in the long term?
Answers
Explanations
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A. B. C. D.B.
The best way to address the issue of risk workshop participants focusing on financial cost rather than appropriate response in the long term is to raise the maturity of organizational risk management. This is option C.
Option A suggests reviewing the risk register and risk scenarios. While this may be a good idea, it does not directly address the issue of participants focusing on financial cost rather than appropriate response.
Option B suggests calculating the annualized loss expectancy of risk scenarios. While this may provide valuable information about the potential financial impact of different risk scenarios, it does not address the underlying issue of participants focusing on financial cost rather than appropriate response.
Option D suggests performing a return on investment analysis. While this may be useful in evaluating the financial impact of different risk management strategies, it does not directly address the issue of participants focusing on financial cost rather than appropriate response.
Option C, raising the maturity of organizational risk management, is the best way to address the underlying issue. This involves improving the overall risk management practices of the organization, including risk identification, analysis, evaluation, and response planning. This may involve providing training to participants in the risk workshop to help them understand the importance of appropriate risk response, as well as improving communication and collaboration between different parts of the organization involved in risk management. By raising the maturity of organizational risk management, the organization can ensure that risk decisions are made based on a balanced consideration of both financial costs and appropriate risk response.
