D. develop a comprehensive risk mitigation strategy.
Low-probability, high-impact events, often referred to as "black swan" events, can have significant and potentially catastrophic consequences for an organization if they occur. By including them in a risk assessment, organizations can take proactive measures to develop comprehensive risk mitigation strategies that address these rare but potentially devastating events. This ensures that the organization is better prepared and more resilient in the face of unexpected and severe risks. While options A, B, and C are also important aspects of risk assessment and management, the primary focus of including low-probability, high-impact events is typically on developing effective mitigation strategies to reduce their potential impact.
The greatest benefit of including low-probability, high-impact events in a risk assessment is the ability to develop a comprehensive risk mitigation strategy. By considering these events, which may have severe consequences even if they are unlikely to occur, organizations can better prepare and plan for such scenarios. This allows for the development of strategies to mitigate the impact or likelihood of these events, enhancing overall risk management. It helps organizations be more resilient and proactive in addressing potential challenges, even those with a low probability of occurrence but with significant consequences.
D, page 122 in manual: "risk practioner combines the results of a risk assessment into a COMPREHENSIVE report". we need to understand all related risk, even low probability, to understand what's how to respond.
Going with B. The question is presenting one type of risk, so it is not necessarily helping comprehensiveness. It is presenting a realistic and relatable risk. That, and I noticed that this question was not a topic of debate until until very recently, so the provided answer was not considered incorrect by many people.
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