Which of the following statements about risk assessment is true?
A) Risk assessment focuses on the quantitative evaluation of exposures.
B) Risk assessment evaluates risk both on an inherent and residual basis.
C) Risk assessment determines the organization's tolerance for exposure.
D) Risk assessment is the amount of inherent risk in a separately identifiable business entity.

Question

Quizplus · Accepted Answer

Risk assessment evaluates risk both on an inherent and residual basis, considering the potential impact and likelihood of risks before and after controls are applied.

Which of the Following Statements About Risk Assessment Is True