CCAK · Question #13
Which of the following aspects of risk management involves identifying the potential reputational harm and/or financial harm when an incident occurs?
The correct answer is D. Impact Analysis. Impact Analysis is the risk management activity focused on determining the consequences of a risk materializing - specifically quantifying or qualifying the harm that would result, including financial losses, regulatory penalties, reputational damage, and operational…
Question
Which of the following aspects of risk management involves identifying the potential reputational harm and/or financial harm when an incident occurs?
Options
- AMitigations
- BResidual risk
- CLikelihood
- DImpact Analysis
How the community answered
(43 responses)- A5% (2)
- B2% (1)
- D93% (40)
Explanation
Impact Analysis is the risk management activity focused on determining the consequences of a risk materializing - specifically quantifying or qualifying the harm that would result, including financial losses, regulatory penalties, reputational damage, and operational disruption. Likelihood (C) measures how probable an incident is, not how severe. Mitigations (A) are the controls or responses put in place to reduce risk - not an assessment of harm. Residual risk (B) is the level of risk that remains after mitigations are applied. Only Impact Analysis (D) directly corresponds to evaluating the severity of harm when an incident occurs.
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