Which of the following parameters are considered for the selection of risk indicators? Each correct answer represents a part of the solution. (Choose three.)
A.
Size and complexity of the enterprise
B.
Type of market in which the enterprise operates
Suggested Answer:ABD🗳️
Risk indicators are placed at control points within the enterprise and are used to collect data. These collected data are used to measure the risk levels at that point. They also track events or incidents that may indicate a potentially harmful situation. Risk indicators can be in form of logs, alarms and reports. Risk indicators are selected depending on a number of parameters in the internal and external environment, such as: ✑ Size and complexity of the enterprise ✑ Type of market in which the enterprise operates ✑ Strategy focus of the enterprise Incorrect Answers: C: Risk appetite and risk tolerance are considered when applying various risk responses.
The three correct parameters considered for the selection of risk indicators are:
A. Size and complexity of the enterprise: Larger and more complex enterprises may face diverse risks, requiring tailored indicators.
C. Risk appetite and risk tolerance: Understanding the organization's capacity to manage risk helps in selecting appropriate indicators.
D. Strategy focus of the enterprise: Indicators should align with the organization's strategic goals to effectively monitor risks
Option B, the type of market in which the enterprise operates, may influence risk, but it is not a direct parameter for selecting risk indicators.
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Ravnit
1 day, 5 hours ago