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Yusef is a new procurement manager at FRD Incorporated. He is looking through the Risk Assessments for his department and notices that the cause of the risk is not identified. Why might this be?
Suggested Answer: C
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This could be for cultural reasons within the company. P. 135 states that sometimes causes of risk are not recorded as this could lead to a blame culture within the company.
21 comments · newest first
CO
Coleen
10 months ago
Yeah, if they’re not identifying causes, they’re doing it wrong!
RE
Reita
10 months ago
Not sure about that cultural reason... seems odd.
MA
Maryann
10 months ago
I think it could be a high risk appetite situation.
GL
Glory
11 months ago
Wait, how can you not record the cause? That’s just bad practice!
AN
Angella
11 months ago
Definitely a mistake! All risks should have a cause listed.
TR
Tracey
12 months ago
I practiced a question similar to this, and I think if the assessments are incorrect, it could lead to missing causes. That might be a possibility here.
ME
Melodie
12 months ago
I'm not entirely sure, but I feel like cultural reasons could play a role in how risks are assessed. Maybe they avoid pinpointing causes for that?
PA
Paola
1 year ago
I think I read somewhere that some organizations might not record causes due to a high risk appetite. That could be a reason, right?
SO
Socorro
1 year ago
I remember discussing how important it is to identify the cause of risks in our studies. It seems like a mistake if it's missing.
NI
Niesha
1 year ago
I feel pretty confident about this one. The correct answer is definitely A - this is a mistake, and Yusef should raise it with his manager. All risk assessments should have the cause of the risk clearly identified.
RA
Raymon
1 year ago
Okay, let me think this through. I'm leaning towards option C - the organization may not have recorded the cause for cultural reasons, like trying to avoid accountability or something. That could explain why the information is missing.
EL
Ellsworth
1 year ago
I'm a bit confused by this question. Is it possible that the organization has a high risk appetite, as option B suggests? I'm not sure if that would explain the missing cause information.
TH
Thaddeus
1 year ago
Hmm, this is an interesting one. I'm thinking it could be either A or D - the risk assessments should definitely specify the cause, so if they haven't done that, it's likely a mistake on their part.
KI
Kina
1 year ago
A) this is a mistake - all risk assessments should specify the cause of the risk. He should raise this with his manager.
TA
Talia
1 year ago
Cultural reasons, huh? I bet they just got lazy and skipped that part. Good thing Yusef is on the case!
YU
Yuette
1 year ago
Maybe the organization has a high risk appetite and doesn't feel the need to identify the cause. That seems a bit risky to me, though.
VI
Virgie
10 months ago
Definitely! Ignoring causes is a bad practice.
JU
Jules
11 months ago
But shouldn't they at least identify the cause?
LA
Lashunda
11 months ago
I agree, a high risk appetite can lead to problems.
ET
Ettie
11 months ago
Maybe they just need to improve their risk assessment process.
RO
Rolande
1 year ago
The lack of identified cause in the risk assessment is definitely a mistake. Yusef should raise this with his manager to ensure proper risk management practices are followed.