A risk practitioner has populated the risk register with industry-based generic risk scenarios to be further assessed by risk owners. Which of the following is the GREATEST concern with this approach?
A.
Risk scenarios in the generic list may not help in building risk awareness
B.
Risk scenarios that are not relevant to the organization may be assessed
C.
Developing complex risk scenarios using the generic list will be difficult
D.
Relevant risk scenarios that do not appear in the generic list may not be assessed
I think it’s D because not knowing/ assessing/ mitigating a true risk (which is relevant to the company and not generic) is worse than spending time and resources on an irrelevant risk (waste).
D. Relevant risk scenarios that do not appear in the generic list may not be assessed
While using an industry-based generic list can help to start the risk management process, it might miss risks that are specific to the organization's unique context, operations, or environment. If those specific risks are not included in the generic list, they may not be assessed at all, which would leave the organization exposed to unidentified and unmanaged risks. Hence, the biggest concern with this approach would be the potential overlooking of relevant risk scenarios unique to the organization.
its D. if the risk is not relevant, it will cater out in the risk analysis process.
but if the risk is missed. it is the big problem.
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