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Exam IIA-CIA-Part1 topic 6 question 444 discussion

Actual exam question from IIA's IIA-CIA-Part1
Question #: 444
Topic #: 6
[All IIA-CIA-Part1 Questions]

Which of the following is a benefit of using a portfolio view of risks?

  • A. It can show risks that are severe at the organization level
  • B. It can show how some risks offset other risks by acting as natural hedges at the business objective level
  • C. It can show how risks fall within categories and the interdependencies among risks within categories
  • D. It can show positive or negative correlations with changes occurring in the external environment
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Suggested Answer: B 🗳️

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Kozy
6 days, 13 hours ago
Selected Answer: A
Correct Answer: A. It can show risks that are severe at the organization level. A portfolio view of risks provides a comprehensive, top-down perspective that helps management and the board see how individual risks aggregate and impact the organization as a whole. This view highlights which risks are most severe at the enterprise level, helping with strategic decision-making and resource allocation. B Answer: Incorrect B. Natural hedges at the business objective level: This refers more to risk integration or balancing, not specifically the purpose of a portfolio view, which looks at enterprise-level impact.
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