Negative Risk Events Response | CRISC Exam Preparation Guide | ISACA

D.

Among the given choices only Acceptance response is used for negative risk events.

Risk acceptance means that no action is taken relative to a particular risk; loss is accepted if it occurs.

If an enterprise adopts a risk acceptance, it should carefully consider who can accept the risk.

Risk should be accepted only by senior management in relationship with senior management and the board.

There are two alternatives to the acceptance strategy, passive and active.

-> Passive acceptance means that enterprise has made no plan to avoid or mitigate the risk but willing to accept the consequences of the risk.

Active acceptance is the second strategy and might include developing contingency plans and reserves to deal with risks.

Incorrect Answers: A, B, C: These all are used to deal with opportunities or positive risks, and not with negative risks.

Out of the four risk responses mentioned, "Accept" is the risk response that is used for negative risk events.

Risk response is a part of the risk management process that involves determining how to address identified risks. There are four possible risk responses, which are as follows:

A. Share: This response involves transferring the risk to another party, such as through insurance or outsourcing. This response is typically used for risks that are too costly or complex to address internally.

B. Enhance: This response involves taking actions to increase the probability or impact of a positive risk event. This response is typically used for risks that have potential positive outcomes.

C. Exploit: This response involves taking actions to ensure that a positive risk event occurs and maximizes its potential benefits. This response is typically used for risks that have potential positive outcomes.

D. Accept: This response involves acknowledging the risk and deciding not to take any action to address it. This response is typically used for risks that are considered acceptable, either because the cost of addressing them is too high or because they are unlikely to occur or have a minimal impact.

Out of the above four risk responses, "Accept" is the response that is used for negative risk events. This means that when a risk event is deemed to have a negative impact, the risk can be accepted by the organization, meaning that they choose not to take any action to address it. This may be because the cost of addressing the risk is too high, or the likelihood and potential impact of the risk are minimal. However, it is important to note that simply accepting a risk is not always the best approach, as it can lead to negative consequences if the risk does materialize. Therefore, it is recommended to evaluate the risks and select an appropriate response based on the organization's risk appetite and risk management strategy.