A company president is concerned about the impact of a natural disaster on the company. How should management identify areas to apply its resources and mitigate potential impacts?

Question

Options

• AEstablish and keep an active risk register that includes mitigation strategies and a cost-benefit
• BEstablish and keep an active risk register based on qualitative risk analysis and expected losses.
• CHave each development team post the highest risk development items on the information
• DAvoid risk by splitting development teams into two locations to ensure knowledge continuity.

• A
  78% (18)
• B
  13% (3)
• C
  4% (1)
• D
  4% (1)

Explanation

An active risk register that includes both mitigation strategies and a cost-benefit analysis gives management the complete picture needed to prioritize where to allocate resources - balancing the cost of mitigation against the potential impact of the risk. Option B is weaker because qualitative analysis and expected losses alone don't provide the cost-benefit context needed for resource allocation decisions. Option C is too narrow, focusing only on development risks rather than organization-wide natural disaster preparedness. Option D (splitting teams geographically) is a single mitigation tactic, not a comprehensive risk management strategy, and avoidance is rarely the best sole approach.

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