IIA-CIA-PART2 · Question #295
Which of the following best exemplifies having effective risk management and internal control processes?
The correct answer is A. Relevant risk indicators and mitigation plans are in place. Effective risk management and internal control processes are best exemplified by having relevant risk indicators and mitigation plans in place. This demonstrates that the organization not only identifies and assesses risks but also actively monitors and manages these risks…
Question
Which of the following best exemplifies having effective risk management and internal control processes?
Options
- ARelevant risk indicators and mitigation plans are in place
- BAll risks are identified and assessed
- CBusiness profitability is likely to be achieved
- DRisk information is communicated to customers and suppliers
How the community answered
(21 responses)- A86% (18)
- B10% (2)
- D5% (1)
Explanation
Effective risk management and internal control processes are best exemplified by having relevant risk indicators and mitigation plans in place. This demonstrates that the organization not only identifies and assesses risks but also actively monitors and manages these risks through appropriate mitigation strategies. The presence of risk indicators and mitigation plans indicates a proactive approach to risk management, ensuring that potential issues are addressed before they can impact the organization significantly.
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