Certified Business Analysis Professional (CBAP) — Question 369
Which of the following establishes organizational checks and balances with a proper segregation of front, back, and middle office functions for effective risk management?
Answer options
- A. Risk response plan
- B. Risk analysis
- C. Risk management plan
- D. Risk governance
Correct answer: D
Explanation
The correct answer, Risk governance, refers to the framework that ensures proper segregation of functions within an organization, which is essential for effective risk management. The other options, such as Risk response plan, Risk analysis, and Risk management plan, do not specifically address the organizational structure needed for establishing checks and balances.