C. Business impact analysis (BIA)
The most effective way of assessing enterprise risk is through a Business Impact Analysis (BIA). A BIA evaluates the potential impact of disruptions to critical business operations and processes. It identifies and prioritizes key business functions and resources, assesses the potential financial and non-financial impacts of disruptions, and helps organizations understand the consequences of various risk scenarios.
By conducting a BIA, organizations can gain insights into the dependencies between different business functions, prioritize risk mitigation efforts, and develop strategies to enhance resilience and business continuity. It provides a comprehensive understanding of the potential consequences of risk events, enabling organizations to make informed decisions and allocate resources effectively to manage risks and minimize disruptions.
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