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Question 3 - IT Risk Fundamentals discussion

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For risk reporting to adequately reflect current risk management capabilities, the risk report should be based on the enterprise:

A.

risk management framework.

Answers
A.

risk management framework.

B.

risk profile.

Answers
B.

risk profile.

C.

risk appetite.

Answers
C.

risk appetite.

Suggested answer: B

Explanation:

Understanding Risk Reporting:

For risk reporting to accurately reflect current risk management capabilities, it should be based on the organization's current risk profile, which provides a comprehensive view of all identified risks, their severity, and their impact on the organization.

Components of Risk Reporting:

Risk Management Framework (A) provides the overall approach and guidelines for managing risk but does not reflect the current state of risks.

Risk Appetite (C) defines the level of risk the organization is willing to accept but does not detail the current risks being managed.

Current Risk Profile:

The risk profile offers a detailed snapshot of the current risks, including emerging risks, changes in existing risks, and the effectiveness of the controls in place to manage these risks.

This aligns with guidelines from frameworks such as ISO 31000 and COSO ERM, which stress the importance of a dynamic and current view of the risk landscape for effective risk reporting.

Conclusion:

Therefore, to reflect current risk management capabilities, the risk report should be based on the enterprise's risk profile.


asked 18/11/2024
Arturs Grigorjevs
42 questions
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