QuestionQ131

Risk Optimization

Which of the following approaches is MOST likely to be used to assess plausible risk scenarios that may result in reputational risk to the enterprise?

  • A SWOT analysis
  • B Controls gap analysis
  • C Quantitative analysis
  • D Qualitative analysis
Explanation

Qualitative analysis is most suitable for reputational risk because its likelihood and consequences commonly depend on stakeholder perceptions and other factors that cannot be reliably expressed as precise numerical values.

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