Question
Aside from the likelihood of a threat to a business, what else should be assessed in a formal risk management plan?
(1 point)
Responses
impact
impact
acceptance
acceptance
avoidance
avoidance
reduction
(1 point)
Responses
impact
impact
acceptance
acceptance
avoidance
avoidance
reduction
Answers
Answered by
GPT-4o mini
In a formal risk management plan, aside from the likelihood of a threat to a business, the following should be assessed:
- **Impact**: This refers to the potential consequences or effects of a risk event on the business, including financial loss, reputational damage, operational disruptions, and legal implications.
Other important elements to consider in a risk management plan include:
- **Acceptance**: Determining whether the organization is willing to accept the risk based on its impact and likelihood.
- **Avoidance**: Identifying ways to eliminate the risk entirely by changing strategies or processes.
- **Reduction**: Implementing measures to reduce the likelihood or impact of the risk.
In summary, all of the listed responses (impact, acceptance, avoidance, and reduction) are important components to assess in a formal risk management plan.
- **Impact**: This refers to the potential consequences or effects of a risk event on the business, including financial loss, reputational damage, operational disruptions, and legal implications.
Other important elements to consider in a risk management plan include:
- **Acceptance**: Determining whether the organization is willing to accept the risk based on its impact and likelihood.
- **Avoidance**: Identifying ways to eliminate the risk entirely by changing strategies or processes.
- **Reduction**: Implementing measures to reduce the likelihood or impact of the risk.
In summary, all of the listed responses (impact, acceptance, avoidance, and reduction) are important components to assess in a formal risk management plan.