Which of the following are the goals of risk management? Each correct answer represents a complete solution.
Choose three.
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A. B. C. D.ABC.
Risk management is a crucial process for organizations to identify, assess, and prioritize risks that can affect their operations, assets, or reputation. It helps to make informed decisions regarding the risks and implement measures to mitigate or transfer the risks. The goals of risk management are as follows:
A. Finding an economic balance between the impact of the risk and the cost of the countermeasure: This goal aims to ensure that the cost of mitigating a risk does not exceed the potential impact of the risk. Organizations should evaluate the cost-effectiveness of different countermeasures to identify the most feasible and efficient approach to address the risks. For example, implementing an expensive physical security system may not be a cost-effective solution for a low-risk area.
B. Identifying the risk: The first goal of risk management is to identify the potential risks that can affect an organization. This process involves analyzing the internal and external environment, identifying vulnerabilities, and assessing the likelihood and impact of potential threats. Identifying risks enables organizations to prioritize their resources and focus on critical risks that can cause significant damage.
C. Assessing the impact of potential threats: Risk assessment is a critical process that evaluates the potential impact of identified risks on an organization. It involves analyzing the likelihood of a threat occurring and the severity of its impact. Assessing the impact helps organizations to prioritize the risks and implement appropriate measures to reduce the impact of the risk.
D. Identifying the accused: This option is not a goal of risk management. Therefore, it is not a correct answer. Instead, risk management focuses on identifying, assessing, and prioritizing risks to make informed decisions regarding the risks.
In summary, the correct answers are A, B, and C. The goals of risk management are to find an economic balance between the impact of the risk and the cost of the countermeasure, identify the risk, and assess the impact of potential threats.