SSCP · Question #465
SSCP Question #465: Real Exam Question with Answer & Explanation
The correct answer is C: The process of reducing risk to an acceptable level. Risk management is best defined as the process of reducing risk to an acceptable level. It is not about eliminating risk entirely (option A), as zero risk is generally unachievable and not cost-effective. Assessing risks (option B) is only one component of risk management (called
Question
What would BEST define risk management?
Options
- AThe process of eliminating the risk
- BThe process of assessing the risks
- CThe process of reducing risk to an acceptable level
- DThe process of transferring risk
Explanation
Risk management is best defined as the process of reducing risk to an acceptable level. It is not about eliminating risk entirely (option A), as zero risk is generally unachievable and not cost-effective. Assessing risks (option B) is only one component of risk management (called risk assessment or analysis). Transferring risk (option D) is one possible risk response strategy within risk management, not the definition of the overall process. The goal of risk management is to identify, assess, and treat risks so that residual risk falls within the organization's risk tolerance.
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