Download Certified in Risk and Information Systems Control.CRISC.PracticeTest.2019-01-24.251q.tqb

Each business process involves inherent risk. Not engaging in any activity avoids the inherent risk associated with the activity. Hence this demonstrates risk avoidance. Incorrect Answers:B: Risk treatment means that action is taken to reduce the frequency and impact of a risk.C: Acceptance means that no action is taken relative to a particular risk, and loss is accepted when/if it occurs. This is different from being ignorant of risk; accepting risk assumes that the risk is known, i.e., an informed decision has been made by management to accept it as such.D: Risk transfer/sharing means reducing either risk frequency or impact by transferring or otherwise sharing a portion of the risk. Common techniques include insurance and outsourcing. These techniques do not relieve an enterprise of a risk, but can involve the skills of another party in managing the risk and reducing the financial consequence if an adverse event occurs.

The risk components defined by the COSO ERM are internal environment, objective settings, event identification, risk assessment, risk response, control objectives, information and communication, and monitoring. Incorrect Answers:C: Business continuity is not considered as risk component within the ERM framework.

The outcome of quantitative analysis can create a listing of prioritized risks that should be updated in the risk register. The project team will create and update the risk register with four key components:probabilistic analysis of the project probability of achieving time and cost objectives list of quantified risks trends in quantitative risk analysis Incorrect Answers:A, B, D: These subjects are not updated in the risk register as a result of quantitative risk analysis.