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Exam CRISC topic 1 question 127 discussion

Actual exam question from Isaca's CRISC
Question #: 127
Topic #: 1
[All CRISC Questions]

Risks to an organization's image are referred to as what kind of risk?

  • A. Operational
  • B. Financial
  • C. Information
  • D. Strategic
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Suggested Answer: D 🗳️
Strategic risks are those risks which have potential outcome of not fulfilling on strategic objectives of the organization as planned. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization.
Strategic risks can be broken down into external and internal risks:
✑ External risks are those circumstances from outside the enterprise which will have a potentially damaging or helpful impact on the enterprise. These risks include sudden change of economy, industry, or regulatory conditions. Some of the external risks are predictable while others are not. For instance, a recession may be predictable and the enterprise may be able to hedge against the dangers economically; but the total market failure may not as predictable and can be much more devastating.
✑ Internal risks usually focus on the image or reputation of the enterprise. some of the risks that are involved in this are public communication, trust, and strategic agreement from stakeholders and customers.

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theApostle
Highly Voted 2 years ago
I thought that should be reputational risk - But I guess reputational risk is also strategic in nature.
upvoted 5 times
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Shaws1
Most Recent 7 months, 3 weeks ago
wrong options provided. Reputation risk should have been listed
upvoted 1 times
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