D. Residual risk.
The BEST way to obtain senior management support for investment in a control implementation is to articulate the reduction in residual risk. Residual risk refers to the level of risk that remains after controls or mitigation measures have been applied to reduce the initial or inherent risk. It represents the risk that an organization is willing to accept or retain.
Inherent Risk is typically defined as the level of risk in place in order to achieve an entity's objectives and before actions are taken to alter the risk's impact or likelihood.
Residual Risk is the remaining level of risk following the development and implementation of the entity's response. So I feel the answer is C - Residual risk.
Answer C "Inherent" is correct, investment in reducing inherent risk results in lower residual risk, that's the whole purpose of implementing controls.
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