Discover the most effective method for developing comprehensive and relevant enterprise risk scenarios according to ISACA’s CRISC certification exam. Combine top-down and bottom-up approaches for optimal results.
Table of Contents
Question
Which of the following would produce the MOST comprehensive and relevant enterprise risk scenarios?
A. Conduct risk assessment workshops with business process owners.
B. Conduct risk assessment workshops with risk owners.
C. Leverage current and historical data to inform risk scenarios.
D. Combine top-down and bottom-up approaches.
Answer
D. Combine top-down and bottom-up approaches.
Explanation
The most comprehensive and relevant enterprise risk scenarios can be produced by combining top-down and bottom-up approaches (Option D).
A top-down approach starts with high-level strategic objectives and works downward to identify risks that could impact those objectives. This provides a broad, enterprise-wide view of key risks. Conducting risk assessment workshops with risk owners (Option B) is an example of a top-down approach.
In contrast, a bottom-up approach begins with lower-level business processes and assets, and works upward to understand how risks to those elements roll up to strategic risks. This detailed view helps surface granular operational and technology risks that may be overlooked in a pure top-down assessment. Conducting risk assessment workshops with business process owners (Option A) represents a bottom-up approach.
Leveraging current and historical data (Option C) to inform risk scenarios is valuable, but relying solely on data analysis may miss important business context that can be provided by top-down and bottom-up methods.
Therefore, combining top-down and bottom-up approaches (Option D) will yield the most comprehensive identification of relevant risk scenarios by marrying the strategic enterprise view with detailed operational insights. The top-down view frames overall risk priorities, while the bottom-up view validates those and surfaces additional granular risks. Using both in concert produces the most robust results.
ISACA CRISC certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the ISACA CRISC exam and earn ISACA CRISC certification.