Which step involves assessing what events may occur, when they will occur, and how they could affect achievement of key objectives?

Which step involves assessing what events may occur, when they will occur, and how they could affect achievement of key objectives?

• A. Conducting a business impact analysis
• B. Developing a continuity plan
• C. Performing a risk assessment
• D. Understanding the business

Answer: (C)

This is about the risk assessment step in risk management. A risk assessment identifies potential events that could occur, estimates how likely they are (and when they might occur), and evaluates how these events could affect the achievement of key objectives. By considering both the probability and the impact, you can prioritize which risks need controls or mitigations and tailor appropriate responses. Understanding how this differs from other steps helps: a business impact analysis looks at the consequences to critical processes if disruptions happen and helps set recovery priorities; developing a continuity plan uses those insights to create strategies for continuing operations; understanding the business is the foundational knowledge of what the organization does and what objectives it aims to protect. But when the question asks about identifying events, their timing, and their effect on objectives, that’s the scope of the risk assessment.

This is about the risk assessment step in risk management. A risk assessment identifies potential events that could occur, estimates how likely they are (and when they might occur), and evaluates how these events could affect the achievement of key objectives. By considering both the probability and the impact, you can prioritize which risks need controls or mitigations and tailor appropriate responses.

Understanding how this differs from other steps helps: a business impact analysis looks at the consequences to critical processes if disruptions happen and helps set recovery priorities; developing a continuity plan uses those insights to create strategies for continuing operations; understanding the business is the foundational knowledge of what the organization does and what objectives it aims to protect. But when the question asks about identifying events, their timing, and their effect on objectives, that’s the scope of the risk assessment.