Exam CRISC topic 1 question 169 discussion

A. Internal control Internal control is a set of processes, policies, and procedures implemented by an organization to safeguard its assets, ensure accuracy in financial reporting, and achieve operational effectiveness and efficiency. It helps assure management that the organization's objectives are protected from the occurrence of risk events by mitigating, detecting, and preventing risks. Internal controls are designed to manage and reduce risks within the organization, making them a key component of risk management. While risk management (option B) is a broader concept that encompasses various activities, including risk assessment and mitigation, internal controls specifically focus on the protection of the organization's objectives from risk events. Hedging (option C) is a financial strategy used to offset risks associated with financial instruments, while risk assessment (option D) is a part of the risk management process that involves identifying and analyzing risks.