Risk Acceptance Component in CISM Exam | isaca Exam Question

B.

Risk acceptance is one of the alternatives to be considered in the risk mitigation process.

Assessment and evaluation are components of the risk analysis process.

Risk acceptance is not a component of monitoring.

Risk acceptance is a component of the risk management process, which includes assessing risks, evaluating risk responses, and monitoring risk over time. In particular, risk acceptance refers to the decision by an organization or individual to accept the potential impact of a risk rather than implementing measures to mitigate or transfer it.

To elaborate on the options listed in the question:

A. Assessment: Risk assessment is the process of identifying, analyzing, and evaluating risks to determine their likelihood and potential impact. Risk assessment is the first step in the risk management process, and it provides the information necessary to make decisions about risk response options.

B. Mitigation: Risk mitigation involves taking actions to reduce the likelihood or impact of a risk. This can include implementing controls or safeguards to prevent a risk from occurring or minimizing its impact if it does occur. Risk mitigation is one of the primary risk response options, along with risk avoidance, risk transfer, and risk acceptance.

C. Evaluation: Risk evaluation involves comparing the results of risk assessment against criteria such as risk appetite, risk tolerance, or regulatory requirements to determine the significance of a risk. This step helps prioritize risks and determine which risks require additional attention or action.

D. Monitoring: Risk monitoring involves tracking risks over time to ensure that risk management measures remain effective and to identify any changes in the risk environment that may require a reassessment of risks or risk responses.

Therefore, the correct answer to the question is D. Monitoring. Risk acceptance is a component of the ongoing risk management process that includes monitoring risks to ensure that they remain within acceptable levels and that risk response measures remain effective.