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CGEIT · Question #505

Which of the following is the PRIMARY benefit to an enterprise when risk management is practiced effectively throughout the organization?

The correct answer is A. Decisions are made with an awareness of probability and impact.. The primary benefit of effective enterprise-wide risk management is that decisions are made with a clear awareness of potential probabilities and impacts of various outcomes.

Submitted by carter_n· Apr 18, 2026Risk Optimization

Question

Which of the following is the PRIMARY benefit to an enterprise when risk management is practiced effectively throughout the organization?

Options

  • ADecisions are made with an awareness of probability and impact.
  • BIT objectives and goals are aligned to business objectives and goals.
  • CBusiness opportunity losses are minimized.
  • DInnovative strategic initiatives are encouraged.

How the community answered

(17 responses)
  • A
    94% (16)
  • C
    6% (1)

Why each option

The primary benefit of effective enterprise-wide risk management is that decisions are made with a clear awareness of potential probabilities and impacts of various outcomes.

ADecisions are made with an awareness of probability and impact.Correct

Effective risk management across an organization ensures that risks are systematically identified, analyzed, and evaluated based on their probability and potential impact. This process directly informs decision-making, allowing leaders to choose strategies, projects, and actions with a comprehensive understanding of the associated uncertainties and potential consequences, leading to more resilient and successful outcomes.

BIT objectives and goals are aligned to business objectives and goals.

While IT objectives aligning with business goals is a positive outcome of good governance, it's a specific aspect of alignment, not the primary benefit of overall risk management, which applies across all departments.

CBusiness opportunity losses are minimized.

Minimizing business opportunity losses is a positive outcome of risk management, but it's a consequence of making better decisions, not the primary overarching benefit of the practice itself.

DInnovative strategic initiatives are encouraged.

Encouraging innovative strategic initiatives can be a secondary benefit as risk management can help manage risks associated with innovation, but the primary benefit is informed decision-making across all activities.

Concept tested: Benefits of enterprise risk management

Topics

#risk management#decision making#risk awareness#enterprise risk management

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