You are the risk official of your enterprise.
Your enterprise takes important decisions without considering risk credential information and is also unaware of external requirements for risk management and integration with enterprise risk management.
In which of the following risk management capability maturity levels does your enterprise exists?
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A. B. C. D.B.
0 nonexistent: An enterprise's risk management capability maturity level is 0 when: -> The enterprise does not recognize the need to consider the risk management or the business impact from IT risk.
-> Decisions involving risk lack credible information.
-> Awareness of external requirements for risk management and integration with enterprise risk management (ERM) do not exists.
Incorrect Answers: A, C, D: These all are much higher levels of the risk management capability maturity model and in all these enterprises do take decisions considering the risk credential information.
Moreover, in these levels enterprise is aware of external requirements for risk management and integrate with ERM.
The risk management capability maturity model (CMM) is a framework that helps organizations assess and improve their risk management practices. It consists of five levels, with each level building on the previous one, and represents increasing levels of maturity in risk management capabilities.
Level 0 represents an ad hoc or chaotic approach to risk management, where there is no formal risk management process in place. Level 1 represents a basic level of risk management, where risks are identified and managed on an ad hoc basis.
Based on the scenario provided, it appears that the enterprise takes important decisions without considering risk credentials and is unaware of external requirements for risk management and integration with enterprise risk management. This suggests that the enterprise is at a basic level of risk management, which corresponds to Level 1 of the risk management capability maturity model.
Therefore, the correct answer is A. Level 1.