QuestionQ23

Risk Response and Reporting

The cost to maintain a control has increased beyond the potential loss. Which option BEST describes this circumstance?

  • A Effective risk management
  • B Optimized control management
  • C Over-controlled environment
  • D Insufficient risk tolerance
Explanation

An over-controlled environment exists when control costs outweigh the potential loss associated with the risk being controlled; the control is disproportionate to the risk.

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