Natural Disaster Risk and CRISC Certification | CRISC Exam Prep

Natural Disaster Risk

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Question

Natural disaster is BEST associated to which of the following types of risk?

Answers

Explanations

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A. B. C. D.

C.

Natural disaster can be a long-term or short-term and can have large or small impact on the company.

However, as the natural disasters are unpredictable and infrequent, they are best considered as discontinuous.

Incorrect Answers: A: Natural disaster can be a short-term, but it is not the best answer.

B: Natural disaster can be a long-term, but it is not the best answer.

D: Natural disaster can be of large impact depending upon its nature, but it is not the best answer.

Natural disasters are typically associated with risks that have a large impact. This is because natural disasters can cause significant damage to both physical infrastructure and information systems, resulting in significant losses of data and information, as well as disruptions to business operations.

Natural disasters can have a variety of different impacts, depending on the specific event and its location. For example, hurricanes and floods can cause significant damage to buildings, while earthquakes can cause structural damage to physical infrastructure. Additionally, natural disasters can result in power outages, which can have significant impacts on information systems that rely on electricity to function.

In terms of risk classification, natural disasters are often considered to be discontinuous risks. Discontinuous risks are those that are sudden and unexpected, and which can have a significant impact on an organization's operations. They differ from continuous risks, which are ongoing and can be managed over time.

Overall, the best answer to this question is D. Large impact, as natural disasters are typically associated with risks that have significant impacts on both physical infrastructure and information systems.