CISSP · Question #1435
What type of risk is related to the sequences of value-adding and managerial activities undertaken in an organization?
The correct answer is B. Process risk. The type of risk that is related to the sequences of value-adding and managerial activities undertaken in an organization is process risk. Process risk is the risk that arises from the inefficiency, inadequacy, or failure of the processes that are performed by the organization…
Question
Options
- ADemand risk
- BProcess risk
- CControl risk
- DSupply risk
How the community answered
(25 responses)- A8% (2)
- B88% (22)
- C4% (1)
Explanation
The type of risk that is related to the sequences of value-adding and managerial activities undertaken in an organization is process risk. Process risk is the risk that arises from the inefficiency, inadequacy, or failure of the processes that are performed by the organization to achieve its objectives and deliver its products or services. Process risk can affect the quality, performance, and security of the organization's outputs and outcomes, and can result in financial, operational, or reputational losses or damages. Process risk can be caused by various factors, such as human errors, system errors, design flaws, compliance issues, or external events. Process risk can be managed by implementing and monitoring the process controls, such as policies, procedures, standards, or metrics, that ensure the effectiveness, efficiency, and reliability of the processes.
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