Certified Business Analysis Professional (CBAP) — Question 272

Which of the following processes is used by organizations to set the risk tolerance, identify the potential risks, and prioritize the tolerance for risk?

Answer options

• A. Risk communication
• B. Risk identification
• C. Risk analysis
• D. Risk management

Correct answer: D

Explanation

Risk management is the comprehensive process that encompasses setting risk tolerance, identifying potential risks, and prioritizing those risks based on their acceptance. Risk communication, risk identification, and risk analysis are important components but do not encompass the full scope of managing risks as effectively as risk management does.