QuestionQ449

Risk Assessment

Which of the following offers the MOST useful information for assessing whether an organization has suitably managed its level of risk in relation to its established risk appetite?

  • A Risk velocity
  • B Residual risk
  • C Inherent risk
  • D Risk trend
Explanation

Residual risk is the exposure that remains after controls and other risk treatments are applied. It can be compared directly with the organization’s established risk appetite to determine whether the remaining level of risk is acceptable.

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