CRISC · Question #295
Which of the following scenarios is MOST important to communicate to senior management?
The correct answer is C. Accepted risk scenarios with impact exceeding the risk tolerance. The most important scenario to communicate to senior management is when accepted risk scenarios have an impact exceeding the organization's defined risk tolerance.
Question
Which of the following scenarios is MOST important to communicate to senior management?
Options
- AAccepted risk scenarios with detailed plans for monitoring
- BRisk scenarios that have been shared with vendors and third parties
- CAccepted risk scenarios with impact exceeding the risk tolerance
- DRisk scenarios that have been identified, assessed, and responded to by the risk owners
How the community answered
(60 responses)- A18% (11)
- B3% (2)
- C72% (43)
- D7% (4)
Why each option
The most important scenario to communicate to senior management is when accepted risk scenarios have an impact exceeding the organization's defined risk tolerance.
Accepted risk scenarios with monitoring plans are part of normal operations and do not necessarily require senior management communication unless tolerance is exceeded.
Sharing risk scenarios with vendors is an operational aspect of third-party risk management, not a primary trigger for senior management escalation.
When accepted risk scenarios, despite being managed, are found to have a potential impact that exceeds the organization's established risk tolerance, it signifies a critical deviation from acceptable risk levels. This situation requires immediate attention from senior management for potential re-evaluation, strategic decisions, or resource allocation, as it could threaten business objectives or financial stability.
Risk scenarios identified, assessed, and responded to by risk owners are part of routine risk management processes, unless their impact exceeds tolerance.
Concept tested: Risk Escalation to Management
Source: https://learn.microsoft.com/en-us/compliance/regulatory/regulatory-compliance-dashboard-risk-assessment
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