CGRC · Question #147
The degree to which an organization is threatened by the potential adverse effects on organizational operations and assets, individuals, other organizations, or the Nation best defines an…
The correct answer is D. Risk exposure. Risk exposure quantifies the total potential impact or loss an organization faces from all identified risks, combining likelihood and consequence. It defines the degree to which an organization is threatened by potential adverse effects.
Question
The degree to which an organization is threatened by the potential adverse effects on organizational operations and assets, individuals, other organizations, or the Nation best defines an organization's... Response:
Options
- ARisk appetite
- BRisk profile
- CRisk assessment
- DRisk exposure
How the community answered
(43 responses)- A7% (3)
- B2% (1)
- C2% (1)
- D88% (38)
Why each option
Risk exposure quantifies the total potential impact or loss an organization faces from all identified risks, combining likelihood and consequence. It defines the degree to which an organization is threatened by potential adverse effects.
Risk appetite is the level of risk an organization is willing to accept, not the total degree to which it is threatened.
A risk profile is a structured view of the aggregate risk exposure of an organization, encompassing all identified risks, but the term "risk exposure" specifically describes the degree of threat.
A risk assessment is the process of identifying, analyzing, and evaluating risks, not the degree of threat itself.
Risk exposure is the degree to which an organization, or its operations and assets, individuals, or other organizations, is susceptible to loss or harm due to adverse events. It combines the likelihood and impact of risks, effectively defining the total threat faced by an entity.
Concept tested: Risk Management Terminology - Risk Exposure
Source: https://csrc.nist.gov/glossary/term/risk-exposure
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