As part of its risk strategy, an organization decided to transition its financial system from a cloud-based provider to an internally managed system. Which of the following should the risk practitioner do FIRST?
A.
Evaluate existing control test plans of the system for potential changes.
B.
Analyze the risk register to identify potential updates and changes.
C.
Reassess whether the risk responses properly address known risk and vulnerabilities.
D.
Update the processes within impacted financial control assessments.
When an organization decides to transition its financial system from a cloud-based provider to an internally managed system, the first action a risk practitioner should take is:
C. Reassess whether the risk responses properly address known risks and vulnerabilities.
This reassessment is crucial as the shift from a cloud-based to an internally managed system fundamentally changes the risk landscape. New risks might emerge, and existing risks might evolve in nature and impact. The practitioner needs to ensure that the organization's risk responses are still appropriate and effective in this new context. This reassessment will inform subsequent actions, such as updating control test plans, the risk register, and financial control assessment processes, with a clear understanding of the new risks and vulnerabilities associated with the internal management of the financial system.
B. Analyze the risk register to identify potential updates and changes.
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