You are the risk professional of your enterprise.
You have performed cost and benefit analysis of control that you have adopted.
What are all the benefits of performing cost and benefit analysis of control? Each correct answer represents a complete solution.
Choose three.
Click on the arrows to vote for the correct answer
A. B. C. D.ACD.
Performing a cost and benefit analysis of controls adopted by an organization is an essential part of the risk management process. This analysis helps risk professionals make informed decisions regarding the adoption or rejection of particular controls, and it provides a clear view of the cost-effectiveness of different risk mitigation strategies.
The benefits of performing cost and benefit analysis of control are as follows:
A. It helps in the determination of the cost of protecting what is important: Cost and benefit analysis enables risk professionals to determine the amount of money required to protect the critical assets of the organization. By determining the cost of protecting assets, the risk professional can compare it with the value of the asset to decide whether it is worth the investment.
B. It helps in taking risk response decisions: Risk professionals use cost and benefit analysis to evaluate various risk response options, such as risk acceptance, risk avoidance, risk transfer, or risk mitigation. By assessing the costs and benefits of each option, risk professionals can select the most effective risk response strategy.
C. It helps in providing a monetary impact view of risk: Cost and benefit analysis provides a monetary view of risk, which enables risk professionals to quantify the potential financial impact of risk events. This view enables them to make more informed decisions regarding risk mitigation and management.
D. It helps make smart choices based on potential risk mitigation costs and losses: Cost and benefit analysis helps risk professionals make smart choices by evaluating the potential costs of implementing a particular control or risk mitigation strategy and the potential losses that might occur if the control or strategy is not implemented. By comparing these costs and losses, risk professionals can make informed decisions about the best course of action.
In summary, performing cost and benefit analysis of control is an important process that enables risk professionals to determine the cost of protecting critical assets, take informed risk response decisions, provide a monetary view of risk, and make smart choices based on potential risk mitigation costs and losses.