According to IIA Guidance, Which of the Following Risk Management

question 449

Multiple Choice

According to IIA guidance, which of the following risk management process evaluation findings would the internal audit activity consider most effective?

• A) Relevant risk information is captured and communicated in a periodic manner to management.
• B) Risk management processes are monitored through an annual assessment.
• C) Risk responses align with the organization's risk appetite.
• D) Strategic risks with low residual values are continuously monitored.

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Definitions:

Central Planning

A system where the government or a centralized authority makes all decisions about the production and distribution of goods and services.

Industry Output

The total production of goods and services by all firms in a particular industry over a specific time period.

Chain Reaction

A sequence of reactions where a reactive product or by-product causes additional reactions to take place, often leading to a self-sustaining series of events.

Enterprise Success

The achievement of desired business outcomes, such as profitability, market share growth, and innovation.