Best Risk Mitigation Strategies

B.

An insurance policy can compensate the enterprise up to 100% by transferring the risk to another company.

Hence in this stem risk is being transferred.

Incorrect Answers: A: Updating the risk registry (with lower values for impact and probability) will not actually change the risk, only management's perception of it.

C: Outsourcing the process containing the risk does not necessarily remove or change the risk.

While on other hand, insurance will completely remove the risk.

D: Staff capacity to detect or mitigate the risk may potentially reduce the financial impact, but insurance allows for the risk to be mitigated up to 100%.

When a risk cannot be sufficiently mitigated through manual or automatic controls, the best option to protect the enterprise from the potential financial impact of the risk is to insure against the risk. Therefore, the correct answer is B.

Insurance is an effective way to transfer the financial impact of a risk to an insurance provider. The provider pays for the damages resulting from the risk, reducing the financial burden on the organization. Insurance policies can cover various types of risks, including cybersecurity risks, natural disasters, and other events that can result in financial loss.

Updating the IT risk registry (Option A) is an important step in managing risk, but it does not provide direct protection against the financial impact of the risk. The registry helps the organization to identify and prioritize risks and develop appropriate mitigation strategies.

Outsourcing the related business process to a third party (Option C) can be an effective risk management strategy in some cases. However, it may not be feasible or desirable in all situations. Outsourcing can introduce new risks, such as loss of control over the outsourced process and data security concerns.

Improving staff training in the risk area (Option D) is an essential part of an effective risk management program. It helps to ensure that staff members are aware of the risks and know how to respond to them. However, it may not be sufficient to protect the organization from the financial impact of the risk.

In conclusion, the best option to protect the enterprise from the potential financial impact of a risk that cannot be sufficiently mitigated through manual or automatic controls is to insure against the risk.