A risk management program should reduce risk to:

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  • Post last modified:December 21, 2021
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Last Updated on December 21, 2021 by InfraExam

A risk management program should reduce risk to:

  • zero.
  • an acceptable level.
  • an acceptable percent of revenue.
  • an acceptable probability of occurrence.
Explanation:
Risk should be reduced to an acceptable level based on the risk preference of the organization. Reducing risk to zero is impractical and could be cost-prohibitive. Tying risk to a percentage of revenue is inadvisable since there is no direct correlation between the two. Reducing the probability of risk occurrence may not always be possible, as in the ease of natural disasters. The focus should be on reducing the impact to an acceptable level to the organization, not reducing the probability of the risk.
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