IIA-CIA-PART2 · Question #186
Which of the following would present the most critical external risk to an organization?
The correct answer is D. Regulators announce broad legislative reforms applicable to the industry within which the. Broad legislative reforms present the most critical external risk to an organization because they can fundamentally change the regulatory environment in which the organization operates. Such changes can impact compliance requirements, operational processes, and strategic…
Question
Which of the following would present the most critical external risk to an organization?
Options
- AThe organization experiences a merger, and the management team is reorganized and
- BThe organization launches a product into new global markets
- CAfter minimal testing, the organization implements a new system to replace a legacy system
- DRegulators announce broad legislative reforms applicable to the industry within which the
How the community answered
(45 responses)- A7% (3)
- B13% (6)
- C24% (11)
- D56% (25)
Explanation
Broad legislative reforms present the most critical external risk to an organization because they can fundamentally change the regulatory environment in which the organization operates. Such changes can impact compliance requirements, operational processes, and strategic planning. The organization must quickly adapt to remain compliant and avoid penalties or legal issues. This type of risk is external and largely uncontrollable, making it particularly critical compared to internal changes or new market entries.
Topics
Community Discussion
No community discussion yet for this question.