You are the project manager of GHT project.
You have analyzed the risk and applied appropriate controls.
In turn, you got residual risk as a result of this.
Residual risk can be used to determine which of the following?
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A. B. C. D.CD.
Residual risk can be used by management to determine: -> Which areas require more control Whether the benefits of such controls outweigh the costs -> As residual risk is the output that comes after applying appropriate controls, so it can also estimate the area which need more sophisticated control.
If the cost of control is large that its benefits then no control is applied, hence residual risk can determine benefits of these controls over cost.
Incorrect Answers: A: Status of enterprise's risk can be determined only after risk monitoring.
B: Appropriate control can only be determined as the result of risk assessment, not through residual risk.
Residual risk is the risk that remains after appropriate controls have been applied to mitigate the risks associated with a project or an enterprise. It is important to assess residual risk because it helps project managers to determine whether the implemented controls are effective or not. Residual risk can be used to determine which of the following:
A. Status of enterprise's risk: The residual risk can be used to determine the current status of the enterprise's risk. This means that if the residual risk is high, it indicates that there are still significant risks that need to be addressed, while a low residual risk indicates that the risks have been effectively mitigated.
B. Appropriate controls to be applied next: The residual risk can be used to identify the controls that need to be applied next. This means that if the residual risk is high, it indicates that additional controls need to be implemented to mitigate the risks further.
C. The area that requires more control: Residual risk can also be used to determine the areas that require more control. This means that if the residual risk is high for a specific area, it indicates that additional controls need to be applied to that area.
D. Whether the benefits of such controls outweigh the costs: The residual risk can be used to determine whether the benefits of implementing additional controls outweigh the costs. This means that if the residual risk is high, it may be necessary to implement additional controls, but it is important to ensure that the benefits of these controls outweigh the costs.
In summary, residual risk is an important concept in risk management, and it can be used to determine the status of enterprise's risk, appropriate controls to be applied next, the area that requires more control, and whether the benefits of such controls outweigh the costs.