Most Valuable Input for Quantifying Loss Associated with a Major Risk Event
Question
Which of the following is the MOST valuable input when quantifying the loss associated with a major risk event?
Answers
Explanations
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A. B. C. D.A.
When quantifying the loss associated with a major risk event, the most valuable input would be the Business Impact Analysis (BIA) report.
A Business Impact Analysis (BIA) report is an important component of risk management. It identifies and analyzes the potential impacts of a risk event on an organization's critical business functions, processes, systems, and assets. It provides an estimate of the potential financial and non-financial losses that may occur if a risk event were to occur.
The BIA report identifies the organization's critical business processes, the dependencies between these processes, and the systems and resources that support them. It assesses the potential impact of a disruption to these processes, including financial losses, loss of productivity, and reputational damage.
The BIA report is useful in quantifying the loss associated with a major risk event because it provides an estimate of the potential financial and non-financial losses that may occur. It allows an organization to understand the potential impact of a risk event and to prioritize risk mitigation strategies accordingly.
While Key Risk Indicators (KRIs) and IT environment threat modeling are useful inputs for risk management, they do not provide as detailed an estimate of the potential financial and non-financial losses that may occur as a BIA report does. Recovery Time Objectives (RTOs) are important in determining how quickly an organization needs to recover from a risk event, but they do not provide an estimate of the potential losses that may occur.
In conclusion, the BIA report is the most valuable input when quantifying the loss associated with a major risk event.
