QuestionQ1277

Risk Assessment

Which of the following is the strongest reason to perform a risk assessment?

  • A To determine the present state of risk
  • B To analyze the effect on the business
  • C To satisfy regulatory requirements
  • D To budget appropriately for the application of various controls
Explanation

A risk assessment identifies, analyzes, and evaluates risk to establish its current level and support subsequent risk-treatment decisions. Business impact analysis, compliance, and control budgeting may inform or follow this work but are not its fundamental purpose.

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