Which of the following would help management determine the resources needed to mitigate a risk to the organization?
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A. B. C. D.B.
The business impact analysis (BIA) determines the possible outcome of a risk and is essential to determine the appropriate cost of control.
The risk analysis process provides comprehensive data, but does not determine definite resources to mitigate the risk as does the BIA.
The risk management balanced scorecard is a measuring tool for goal attainment.
A risk-based audit program is used to focus the audit process on the areas of greatest importance to the organization.
The correct answer is B. Business impact analysis (BIA).
A Business Impact Analysis (BIA) is a key component of risk management that helps management determine the resources needed to mitigate a risk to the organization. BIA involves identifying critical business functions, assessing the potential impact of disruptions to those functions, and determining the resources needed to recover from those disruptions.
The BIA process can help management determine the resources needed to mitigate a risk by:
Identifying critical business functions: A BIA helps identify the most critical business functions that need to be protected from risks. This information is used to prioritize resources for risk mitigation.
Assessing potential impact: A BIA assesses the potential impact of disruptions to critical business functions. This information is used to determine the level of resources needed to mitigate the risk.
Determining recovery requirements: A BIA helps determine the resources needed to recover from disruptions to critical business functions. This information is used to ensure that the organization has the necessary resources in place to recover quickly from a risk event.
Risk analysis process, risk management balanced scorecard, and risk-based audit program are all important components of risk management. However, these processes do not specifically help management determine the resources needed to mitigate a risk to the organization.
The risk analysis process involves identifying, assessing, and prioritizing risks. This process can help management understand the nature and extent of risks facing the organization, but it does not provide specific information about the resources needed to mitigate those risks.
A risk management balanced scorecard is a tool for measuring and monitoring the effectiveness of risk management strategies. While this tool can help management assess the effectiveness of risk mitigation efforts, it does not provide specific information about the resources needed to mitigate a particular risk.
A risk-based audit program is a systematic and disciplined approach to evaluating an organization's risk management processes. While this process can help identify areas where additional resources may be needed to mitigate risks, it does not provide specific information about the resources needed to mitigate a particular risk.
In summary, a Business Impact Analysis (BIA) is the most appropriate tool to help management determine the resources needed to mitigate a risk to the organization.