CGRC · Question #372
What does avoidance mean with respect to risk response? Response:
The correct answer is D. It means not venturing in a project due to high risk. Risk avoidance is a risk response strategy where an organization decides not to participate in an activity or project due to the unacceptably high risks involved.
Question
What does avoidance mean with respect to risk response? Response:
Options
- AIt means implementing security controls
- BIt can mean bying an insurance
- CIt means simply ignoring risk
- DIt means not venturing in a project due to high risk
How the community answered
(25 responses)- A4% (1)
- B4% (1)
- D92% (23)
Why each option
Risk avoidance is a risk response strategy where an organization decides not to participate in an activity or project due to the unacceptably high risks involved.
Implementing security controls is a risk mitigation strategy, which aims to reduce the likelihood or impact of a risk, not to avoid it altogether.
Buying insurance is a risk transference strategy, shifting the financial impact of a risk to a third party rather than avoiding the risk itself.
Ignoring risk is not a recognized risk response strategy and typically leads to adverse consequences rather than effective risk management.
Risk avoidance means actively choosing not to engage in an activity or project because the associated risks are deemed too high or unmanageable. By avoiding the activity, the organization eliminates the risk entirely.
Concept tested: Risk response strategies - avoidance
Source: https://learn.microsoft.com/en-us/compliance/regulatory/risk-management-framework-risk-response
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