CRISC · Question #403
Which of the following is the MOST important reason to communicate control effectiveness to senior management?
The correct answer is C. To ensure management understands the current risk status. Communicating control effectiveness to senior management is most important to ensure they possess a clear understanding of the organization's current risk status.
Question
Which of the following is the MOST important reason to communicate control effectiveness to senior management?
Options
- ATo demonstrate alignment with industry best practices
- BTo assure management that control ownership is assigned
- CTo ensure management understands the current risk status
- DTo align risk management with strategic objectives
How the community answered
(24 responses)- A4% (1)
- B13% (3)
- C75% (18)
- D8% (2)
Why each option
Communicating control effectiveness to senior management is most important to ensure they possess a clear understanding of the organization's current risk status.
While alignment with best practices is beneficial, it's not the primary reason for communicating control effectiveness to senior management, as understanding actual risk exposure is more critical.
Assuring management about control ownership is part of governance, but the *result* of effective ownership (i.e., control effectiveness and reduced risk) is the more important communication point.
Senior management requires accurate information on control effectiveness to make informed decisions regarding risk acceptance, mitigation strategies, and resource allocation. Understanding the current risk status, enabled by control effectiveness reporting, allows them to govern effectively and fulfill their fiduciary duties.
Aligning risk management with strategic objectives is a goal, but understanding current risk status (via control effectiveness) is a prerequisite for that alignment.
Concept tested: Risk communication to leadership
Topics
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