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NEW QUESTION: 1
Which of the following BEST indicates a successful risk management practice?
A. Residual risk is minimized
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C. Control risk is tied to business units
D. Overall risk is quantified
Answer: A
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A successful risk management practice minimizes the residual risk to the organization. Choice A is incorrect because the fact that overall risk has been quantified does not necessarily indicate the existence of a successful risk management practice. Choice B is incorrect since it is virtually impossible to eliminate inherent risk. Choice D is incorrect because, although the tying of control risks to business may improve accountability, this is not as desirable as minimizing residual risk.


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