CGEIT · Question #470
CGEIT Question #470: Real Exam Question with Answer & Explanation
The correct answer is A: a common risk management taxonomy.. The first step to integrating IT risk with an enterprise risk management (ERM) framework is establishing a common risk management taxonomy. This ensures consistent language and understanding of risk across the entire organization.
Question
An organization has decided to integrate IT risk with the enterprise risk management (ERM) framework. The FIRST step to enable this integration is to establish:
Options
- Aa common risk management taxonomy.
- Ba common risk organization.
- Ccommon key risk indicators (KRIs).
- Dcommon risk mitigation strategies.
Explanation
The first step to integrating IT risk with an enterprise risk management (ERM) framework is establishing a common risk management taxonomy. This ensures consistent language and understanding of risk across the entire organization.
Common mistakes.
- B. A common risk organization (e.g., a shared committee) is important for governance but cannot function effectively without a common understanding of what constitutes a risk, which the taxonomy provides.
- C. Common Key Risk Indicators (KRIs) are metrics used to monitor risk, but they cannot be effectively defined or utilized until a common understanding and classification of risks (taxonomy) is in place.
- D. Common risk mitigation strategies can only be developed effectively once risks are consistently identified, assessed, and understood using a shared taxonomy.
Concept tested. IT risk and ERM integration foundation
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