Which of the following is the MOST efficient approach for using risk scenarios to evaluate a new business opportunity?

Consolidating unrelated or even related but distinct risks into a single scenario can obscure individual risk impacts and make detailed analysis and mitigation planning less effective, reducing clarity rather than improving efficiency.

Identifying risk events both top-down (from strategic objectives and external factors) and bottom-up (from operational processes and internal controls) provides a comprehensive view. This ensures that both high-level strategic risks and detailed operational risks are captured, leading to a more robust and efficient risk scenario analysis for a new business opportunity.

Leveraging past audit and compliance reports is a valuable input for risk identification, but it primarily focuses on historical internal issues and may not adequately cover new risks specific to a new business opportunity or external factors.

Summarizing and limiting the length of risk scenario narratives might make them concise but risks losing critical detail necessary for thorough analysis and understanding the potential impact, potentially hindering rather than helping evaluation efficiency.