Which of the following should be management's PRIMARY consideration when approving risk response action plans?
Click on the arrows to vote for the correct answer
A. B. C. D.A.
When approving risk response action plans, management's primary consideration should be the changes in residual risk after implementing the plans (Option D).
Explanation:
A risk response action plan is a set of measures that management intends to take to address identified risks. It includes a series of steps and controls designed to mitigate, transfer, avoid or accept the risk. When management approves a risk response action plan, it is essentially approving a course of action to address a particular risk.
The primary consideration of management in approving risk response action plans should be the changes in residual risk after implementing the plans. Residual risk is the risk that remains after management has implemented the risk response plan. It is the risk that the organization still faces despite implementing the plan. Therefore, the primary objective of approving risk response action plans is to reduce the residual risk to an acceptable level.
Option A, prioritization for implementing the action plans, may be important in ensuring that the most critical risks are addressed first. However, prioritization alone does not guarantee that residual risk will be reduced to an acceptable level.
Option B, ability of the action plans to address multiple risk scenarios, may be important in cases where a single action plan can address several risks. However, this should not be the primary consideration in approving risk response action plans.
Option C, ease of implementing the risk treatment solution, may be a consideration, but it should not be the primary consideration. An easy-to-implement risk response plan may not necessarily be effective in reducing residual risk to an acceptable level.
In summary, management's primary consideration in approving risk response action plans should be the changes in residual risk after implementing the plans. This ensures that the organization is taking effective measures to reduce risk to an acceptable level.