All risk management activities are PRIMARILY designed to reduce impacts to:
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A. B. C. D.B.
The aim of risk management is to reduce impacts to an acceptable level.
"Acceptable" or "reasonable" are relative terms that can vary based on environment and circumstances.
A minimum level that is consistent with regulatory requirements may not be consistent with business objectives, and regulators typically do not assign risk levels.
The minimum level possible may not be aligned with business requirements.
The primary objective of risk management activities is to reduce the impacts of potential risks to an acceptable level. The acceptable level is determined based on the organization's risk tolerance, which is the amount of risk that an organization is willing to accept to achieve its objectives.
Option A, which suggests that the acceptable level is defined by the security manager, is not correct. While the security manager may provide input into the risk management process, the acceptable level of risk is ultimately determined by the organization's leadership and stakeholders.
Option C, which suggests that the acceptable level is the minimum level consistent with regulatory requirements, is also not entirely accurate. While regulatory requirements may provide some guidance on the acceptable level of risk in certain areas, they do not necessarily reflect the organization's overall risk tolerance or objectives.
Option D, which suggests that the objective is to reduce impacts to the minimum level possible, is also not entirely accurate. It is often not feasible or cost-effective to completely eliminate all potential risks, and some level of risk may be necessary to achieve business objectives.
Therefore, option B is the correct answer. Risk management activities are primarily designed to reduce the impacts of potential risks to an acceptable level based on organizational risk tolerance. The risk management process involves identifying potential risks, assessing their likelihood and potential impacts, and implementing appropriate risk mitigation measures to reduce the impacts of those risks to an acceptable level. The acceptable level of risk is determined based on the organization's overall risk tolerance, which takes into account its business objectives, values, and other factors.