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Exam CRISC topic 1 question 296 discussion

Actual exam question from Isaca's CRISC
Question #: 296
Topic #: 1
[All CRISC Questions]

Which of the following is the best reason for performing risk assessment?

  • A. To determine the present state of risk
  • B. To analyze the effect on the business
  • C. To satisfy regulatory requirements
  • D. To budget appropriately for the application of various controls
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Suggested Answer: A 🗳️
Risk assessment is a process of analyzing the identified risk, both quantitatively and qualitatively. Quantitative risk assessment requires calculations of two components of risk, the magnitude of the potential loss, and the probability that the loss will occur. While qualitatively risk assessment checks the severity of risk.
Hence risk assessment helps in determining the present state of the risk.
Incorrect Answers:
B: Analyzing the effect of risk on an enterprise is the part of the process while performing risk assessment, but is not the reason for doing it.
C: Performing risk assessment may satisfy the regulatory requirements, but is not the reason to perform risk assessment.
D: Budgeting appropriately is one the results of risk assessment but is not the reason for performing the risk assessment.

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Kennethlim79
1 month, 2 weeks ago
The best reason for performing risk assessment among the given options is B. To analyze the effect on the business. Risk assessment is a critical process in understanding how various risks can impact an organization's operations, objectives, and overall success. By conducting a risk assessment, an organization can gain insights into how potential threats might affect its business, including financial performance, reputation, legal compliance, and operational efficiency. This understanding enables the organization to make informed decisions about how to manage and mitigate those risks effectively.
upvoted 1 times
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Prashil
2 years, 7 months ago
Id go with B
upvoted 1 times
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kingsmann
2 years, 9 months ago
A makes better sense.
upvoted 1 times
dummee
2 days, 7 hours ago
I go with A too, as you need to understand the present state before deciding the next move.
upvoted 1 times
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Rooks
3 years, 4 months ago
I think the answer should be B. Who cares of a risk if there’s no impact on business (or other things).
upvoted 4 times
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