Activities to Facilitate Effective Risk Management
Question
Which of the following activities would BEST facilitate effective risk management throughout the organization?
Answers
Explanations
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A. B. C. D.A.
Effective risk management is a crucial aspect of ensuring the success and continuity of any organization. It involves identifying potential risks, evaluating their potential impact, and implementing measures to mitigate or control them. To facilitate effective risk management throughout the organization, there are various activities that can be undertaken.
Out of the four options presented, conducting periodic risk assessments would be the BEST activity to facilitate effective risk management throughout the organization. This is because regular risk assessments help an organization to identify new and emerging risks, evaluate the effectiveness of existing risk controls, and prioritize risks based on their potential impact.
A business impact analysis (A) is an important activity that helps an organization to identify critical business processes and systems and assess their vulnerability to various threats. However, it is more focused on understanding the potential impact of a specific event or disaster on the organization rather than identifying and evaluating risks.
Performing frequent audits (B) is an essential activity that helps an organization to evaluate the effectiveness of its internal controls and ensure compliance with relevant regulations and standards. However, it is not specifically designed to identify and evaluate risks throughout the organization.
Reviewing risk-related process documentation (C) is an important activity that helps an organization to ensure that its risk management processes and controls are properly documented and maintained. However, it does not involve the identification and evaluation of risks throughout the organization.
In summary, while all four activities presented are important, conducting periodic risk assessments is the BEST activity to facilitate effective risk management throughout the organization as it helps to identify new and emerging risks, evaluate the effectiveness of existing risk controls, and prioritize risks based on their potential impact.
