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NEW QUESTION: 1
Which is the MOST important parameter while selecting appropriate risk response?
A. Importance of risk
B. Capability to implement response
C. Cost of response
D. Efficiency of response
The cost of the response, which is applied so as to reduce risk within tolerance levels, is one of the most important parameter. By considering the cost of response, it is decided whether or not benefits of applying response is greater than accepting the risk; and according to this analysis it is decided whether the certain response should be applied or not. For example, if risk transfer response is applied by using insurance, then cost would be the cost of insurance.
is incorrect. This is one of the parameters that is considered but is not as important as considering cost of response. The importance of the risk is determined by the combination of likelihood and magnitude levels along with its position on the risk map. Answer:B is incorrect. This parameter is considered after analyzing the cost of response, which will further decide the level of sophistication of risk response. The enterprise's capability to implement the response means that if the risk management process is mature then the risk response is moreAnswer:D is incorrect. Efficiency of response can only be analyzed after applying the response. So it is the latter stage in selection of response.