Which of the following aspects of an IT risk and control self-assessment would be MOST important to include in a report to senior management?
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A. B. C. D.D.
When preparing a report on IT risk and control self-assessment for senior management, the most important aspect to include would be an increase in residual risk (option C). Here's why:
Residual risk is the risk that remains after controls have been implemented to mitigate the inherent risk. In other words, it is the risk that the organization is still exposed to despite having controls in place.
Reporting an increase in residual risk is significant because it indicates that the existing controls are not effective enough in reducing the risk to an acceptable level. This means that there is a greater likelihood of potential losses or negative impact to the organization, and senior management should be made aware of this risk.
On the other hand, options A, B, and D may not be as significant in the context of reporting to senior management.
A decrease in the number of key controls (option A) may not necessarily indicate a significant change in risk exposure. It could be due to streamlining or optimizing control activities, which may actually be a positive development.
Changes in control design (option B) could be important, but it would depend on the specific changes made and whether they have any impact on the effectiveness of the controls in mitigating risk.
Changes in control ownership (option D) may be a more operational or administrative matter and may not directly relate to the level of risk exposure. However, it could be relevant if it affects the accountability and responsibility for managing risks within the organization.
In summary, an increase in residual risk (option C) is the most important aspect to include in a report to senior management as it indicates a higher level of risk exposure that needs to be addressed.