QuestionQ271

Risk Assessment

Which of the following is the MOST important consideration when creating an organization's risk taxonomy?

  • A IT strategy
  • B Leading industry frameworks
  • C Business context
  • D Regulatory requirements
Explanation

A risk taxonomy is effective only when it is tailored to the organization’s business context, including its objectives, operations, environment, and risk profile. Frameworks and regulations may provide useful input, but they do not replace context-specific risk classification.

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