CGEIT · Question #9
Risk management strategies are PRIMARILY adopted to:
The correct answer is C. achieve acceptable residual risk levels. The primary purpose of adopting risk management strategies is to reduce identified risks to levels that are acceptable to the organization, known as residual risk.
Question
Risk management strategies are PRIMARILY adopted to:
Options
- Aavoid risks for business and IT assets.
- Btake necessary precautions for claims and losses.
- Cachieve acceptable residual risk levels.
- Dachieve compliance with legal requirements.
How the community answered
(31 responses)- B3% (1)
- C90% (28)
- D6% (2)
Why each option
The primary purpose of adopting risk management strategies is to reduce identified risks to levels that are acceptable to the organization, known as residual risk.
While risk avoidance is one strategy, risk management as a whole is not solely about avoiding all risks, which is often impractical or impossible.
Taking precautions for claims and losses is part of risk mitigation and response, but the overarching goal is broader than just reactive measures.
Risk management strategies encompass various approaches (avoidance, mitigation, transfer, acceptance) designed to bring the overall risk exposure within the organization's defined risk appetite and tolerance. The ultimate goal is not to eliminate all risk, but to manage it so that the remaining, or residual, risk is at an acceptable level for the enterprise.
Achieving compliance is a significant driver for risk management, but it is a subset of achieving acceptable risk levels, as non-compliance often translates to unacceptable legal or reputational risks.
Concept tested: Goal of risk management
Topics
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