While C. approved by relevant stakeholders is important for ensuring buy-in and commitment to the risk management policies, it is not the most important factor for driving effective risk management. Here's why:
Alignment with Business Operations (Option B) is crucial because risk management must be tailored to how the organization functions. A policy framework that is perfectly aligned with the business structure ensures that risk management is embedded into daily operations, decisions, and workflows. This makes it practical and easier to implement, resulting in more effective risk mitigation and control. If the policy is not aligned with business needs, even if stakeholders approve it, it may remain ineffective in practice.
Stakeholder Approval (Option C) is definitely important for securing support, but having stakeholder approval alone does not guarantee that the policy will be practical, relevant, or actionable. Stakeholders might approve a framework that looks good on paper but fails to address the actual risk landscape or operational realities of the organization.
C. approved by relevant stakeholders.
if we change the option b to "B. Aligned to the business objectives." then B would be the correct answer. Currently business structure is not a clear statement
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