Once an organization's risks are identified, what would be the next step to ensure resources are properly allocated to manage those risks?

Question

Options

• ARisk responses must be selected.
• BRisks must be assessed.
• CThe risk universe must be established.
• DRisk responses must be aligned.

• A
  5% (3)
• B
  12% (7)
• C
  79% (45)
• D
  4% (2)

Explanation

After risks are identified, establishing the risk universe is the essential next step - it creates a comprehensive, structured inventory of all identified risks across the organization, ensuring nothing is overlooked before resources are committed. Without this complete picture, resource allocation decisions would be made on incomplete information, leaving gaps in risk coverage.

Why the distractors are wrong:

• B (Assess risks) - Assessment comes after the risk universe is established, not directly after identification. You need the full inventory first so prioritization is based on the complete landscape.
• A (Select risk responses) - Response selection is further downstream; you cannot choose appropriate responses before you've assessed severity and likelihood.
• D (Align risk responses) - Alignment/implementation is the final stage, after responses have already been selected and approved.

Memory tip: Think of the process as building a house - you identify what rooms you need (identification), draft the full blueprint (risk universe), then decide which rooms are most critical (assessment), then choose materials and methods (responses). You can't allocate your construction budget until the blueprint is complete.

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