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Question 1 - IT Risk Fundamentals discussion

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Which of the following is of GREATEST concern when aggregating risk information in management reports?

A.

Duplicating details of risk status

Answers
A.

Duplicating details of risk status

B.

Obfuscating the reasons behind risk

Answers
B.

Obfuscating the reasons behind risk

C.

Generalizing acceptable risk levels

Answers
C.

Generalizing acceptable risk levels

Suggested answer: B

Explanation:

Importance of Clear Risk Reporting:

Accurate and transparent risk reporting is crucial for effective risk management. It allows stakeholders to understand the underlying causes of risks and take appropriate actions.

Greatest Concern in Risk Reporting:

Duplicating details of risk status (A) is less critical as it can be managed through report structuring.

Generalizing acceptable risk levels (C) is also concerning but does not impact the understanding of the root causes of risks as significantly.

Obfuscating Risk Reasons:

The greatest concern is obfuscating the reasons behind risks, as this prevents stakeholders from understanding the true nature of the risk and making informed decisions.

Effective risk management requires clarity about why risks exist and how they are being managed, which aligns with the guidance provided in standards like ISO 31000 and COSO ERM.

Conclusion:

Therefore, the greatest concern when aggregating risk information in management reports is Obfuscating the reasons behind risk.

asked 18/11/2024
Subha Mishra
39 questions
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