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Question 125 - IIA-CIA-Part2 discussion

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Which of the following is most likely to be judged as a significant residual risk that would exceed the organization's acceptable risk level?

A.
Any risk involving organizational expansion into a new geographical area with an unstable political environment.
Answers
A.
Any risk involving organizational expansion into a new geographical area with an unstable political environment.
B.
Any risk involving investments into bitcoin and suspicious derivatives
Answers
B.
Any risk involving investments into bitcoin and suspicious derivatives
C.
Any risk that can cause material or financial loss
Answers
C.
Any risk that can cause material or financial loss
D.
Any risk that could cause injuries or pollute the environment
Answers
D.
Any risk that could cause injuries or pollute the environment
Suggested answer: D

Explanation:

A significant residual risk that would exceed the organization's acceptable risk level is likely to be one that has severe consequences, such as causing injuries or environmental pollution. These types of risks can have substantial legal, financial, and reputational impacts on an organization and are typically beyond acceptable levels of risk tolerance.

Reference:

COSO's Enterprise Risk Management -- Integrating with Strategy and Performance.

The IIA's Practice Guide on Risk Management.

asked 18/09/2024
ABCO TECHNOLOGY
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