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Question 33 - IT Risk Fundamentals discussion

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The use of risk scenarios to guide senior management through a rapidly changing market environment is considered a key risk management

A.

benefit.

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A.

benefit.

B.

incentive.

Answers
B.

incentive.

C.

capability.

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C.

capability.

Suggested answer: A

Explanation:

The use of risk scenarios to guide senior management through a rapidly changing market environment is considered a key risk management benefit. Here's why:

Benefit: Using risk scenarios provides a strategic advantage by helping senior management understand potential future events and their impacts. It enables better decision-making and preparedness in navigating uncertainties.

Incentive: While risk scenarios may provide motivation to improve risk management practices, the primary aspect is the benefit they offer in strategic planning and risk mitigation.

Capability: This refers to the ability of the organization to manage risks. Using risk scenarios enhances the risk management capability but is primarily beneficial in understanding and preparing for risks.

Therefore, using risk scenarios is a key benefit as it enhances the ability of senior management to navigate a changing environment.

asked 18/11/2024
Kyaw Lin Thu
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