While developing obscure risk scenarios, what are the requirements of the enterprise? Each correct answer represents a part of the solution.
Choose two.
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A. B. C. D.BD.
The enterprise must consider risk that has not yet occurred and should develop scenarios around unlikely, obscure or non-historical events.
Such scenarios can be developed by considering two things: -> Visibility -> Recognition -> For the fulfillment of this task enterprise must: -> Be in a position that it can observe anything going wrong -> Have the capability to recognize an observed event as something wrong Incorrect Answers: A, C: These are not the direct requirements for developing obscure risk scenarios, like curing risk events comes under process of risk management.
Hence capability of curing risk event does not lay any impact on the process of development of risk scenarios.
When developing obscure risk scenarios, there are several requirements that an enterprise must fulfill. Two of these requirements are:
A. Have the capability to cure the risk events: The enterprise should be capable of mitigating or resolving the risks that it has identified. It should have a plan in place to prevent, detect, and respond to risks in a timely and effective manner. This involves having appropriate controls and processes in place to manage the identified risks. The enterprise should also have the necessary resources, such as funding, personnel, and technology, to implement the risk management plan.
B. Have the capability to recognize an observed event as something wrong: The enterprise should have the ability to identify and detect unusual or suspicious activities that may be indicative of a risk event. This requires having a well-designed system of controls and processes in place that can identify anomalies or deviations from normal operations. This includes having a robust monitoring and reporting system that can detect and report unusual activities. It also involves having well-trained and experienced personnel who can recognize potential risks and take appropriate action to mitigate them.
C. Having a sufficient number of analysts: While having a sufficient number of analysts is important for risk management, it is not necessarily a requirement when developing obscure risk scenarios. It is more important to have analysts with the right skills, experience, and expertise to identify and manage risks.
D. Be in a position that it can observe anything going wrong: Having the ability to observe anything going wrong is an important requirement for risk management. This requires having a well-designed system of controls and processes in place that can detect and report unusual activities. It also involves having well-trained and experienced personnel who can recognize potential risks and take appropriate action to mitigate them. However, this is not necessarily a requirement when developing obscure risk scenarios. The focus should be on identifying potential risks and developing strategies to mitigate them, rather than waiting for something to go wrong.