CISM · Question #433
Which of the following approaches BEST enables effective decision-making on risk treatment options?
The correct answer is C. Risk is treated based on qualitative and quantitative analysis.. Effective risk decision-making requires a balanced approach using both qualitative and quantitative analysis to assess risk severity, business impact, and cost-effectiveness of treatment options. This ensures that decisions are data-driven, aligned with business objectives, and j
Question
Which of the following approaches BEST enables effective decision-making on risk treatment options?
Options
- ARisk is prioritized based on industry standards.
- BRisk is prioritized based on regulatory requirements.
- CRisk is treated based on qualitative and quantitative analysis.
- DRisk is treated based on likelihood and impact.
How the community answered
(33 responses)- A9% (3)
- B3% (1)
- C70% (23)
- D18% (6)
Explanation
Effective risk decision-making requires a balanced approach using both qualitative and quantitative analysis to assess risk severity, business impact, and cost-effectiveness of treatment options. This ensures that decisions are data-driven, aligned with business objectives, and justifiable to stakeholders. While prioritizing risks based on industry standards, regulations, likelihood, and impact are useful, they do not provide a comprehensive view like a combined qualitative and quantitative risk analysis.
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