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.
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.
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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