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Isaca IT Risk Fundamentals Exam - Topic 4 Question 12 Discussion

Actual exam question for Isaca's IT Risk Fundamentals exam

Question #: 12
Topic #: 4

[All IT Risk Fundamentals Questions]

Which of the following is the BEST reason for an enterprise to avoid an absolute prohibition on risk?

AIt may not be understood by executive management.

BIt may lead to ineffective use of resources.

CIt may not provide adequate support for budget increases.

Show Suggested Answer

Suggested Answer: A

Purpose of Monitoring Control Statuses:

Organizations monitor control statuses to ensure that the controls in place are functioning correctly and achieving their intended outcomes.

Providing Assurance:

Monitoring control statuses provides assurance that the organization is compliant with established standards, regulations, and internal policies.

Compliance is a critical aspect of governance and risk management, ensuring that the organization operates within legal and regulatory frameworks.

Comparison of Options:

B ensuring risk events are fully mitigated is an important aspect but is secondary to the overarching goal of compliance.

C meeting ROI objectives is related to financial performance but does not directly relate to the primary purpose of control monitoring, which is compliance.

Conclusion:

Thus, the primary reason for monitoring control statuses is to provide assurance that compliance with established standards is achieved.

by Luisa at Mar 23, 2025, 04:04 PM

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Paris

7 months ago

Totally agree with B, can't waste resources on unnecessary restrictions.

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Leatha

7 months ago

Wait, are we really saying avoiding risk can be good? That's surprising!

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Lili

7 months ago

C seems a bit off, though. Budget support isn't the main issue here.

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Linsey

7 months ago

I disagree, A makes more sense. Execs need to understand the risks.

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Rodolfo

8 months ago

B is spot on! Resources need to be used wisely.

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Stevie

8 months ago

I agree with Michel about option B. It reminds me of a case study we did on resource allocation and risk management.

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Emile

8 months ago

I feel like option C could be a valid point too, but it seems less relevant than the others. Budgeting is important, but is it the best reason?

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Allene

8 months ago

I'm not entirely sure, but I remember a practice question that mentioned how absolute prohibitions can confuse management. Maybe that's option A?

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Michel

9 months ago

I think option B makes sense because if we prohibit all risks, we might waste resources on unnecessary precautions.

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Michell

9 months ago

This is a tricky one. I can see arguments for each of the options, but I'm not sure which one is the "BEST" reason. I'll have to weigh the pros and cons of each and try to make an informed decision.

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Hyman

9 months ago

Okay, I think I've got a strategy for this. The key is to focus on the "BEST" reason, so I need to evaluate each option and determine which one is the most compelling. I'll make sure to read the question and answers thoroughly.

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Daniel

9 months ago

Hmm, I'm a bit unsure about this one. I know we covered risk management in class, but I'm having trouble remembering the specific reasons for avoiding an absolute prohibition on risk. I'll have to think this through carefully.

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Lajuana

9 months ago

This seems like a straightforward question about risk management in enterprises. I think I have a good handle on the concepts, so I'll carefully consider each option.

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Stephaine

1 year ago

I'd go with B. An absolute prohibition on risk is like trying to live in a bubble - it's just not practical in the real world of business.

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Madelyn

1 year ago

Hmm, this is a tricky one. I bet the correct answer is B, but I might be biased because I once fell asleep during a risk management lecture. Oops!

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Cristal

1 year ago

C seems like the most relevant choice. Without proper budget support, risk management initiatives will always fall short.

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Makeda

1 year ago

I agree, without proper budget support, risk management initiatives will struggle.

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Santos

1 year ago

C) It may not provide adequate support for budget increases.

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Evelynn

1 year ago

B) It may lead to ineffective use of resources.

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Lavonna

1 year ago

A) It may not be understood by executive management.

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Elvera

1 year ago

I'm leaning towards A. An executive team that doesn't understand the nuances of risk management is a recipe for disaster.

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Elke

1 year ago

B) It may lead to ineffective use of resources.

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Dorothy

1 year ago

I agree, if the executives don't understand the risks, they can't make informed decisions.

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Azzie

1 year ago

A) It may not be understood by executive management.

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Remona

1 year ago

I think B is the best answer. An absolute prohibition on risk could lead to inefficient use of resources and stifle innovation.

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Eveline

1 year ago

True, but A is also valid. If executive management doesn't understand the prohibition, it could cause confusion.

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Earnestine

1 year ago

I think C is also important. Without taking risks, we may not be able to support budget increases.

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Wenona

1 year ago

I agree, B makes sense. We need to take calculated risks to move forward.

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Alisha

1 year ago

But what about C) It may not provide adequate support for budget increases? Without taking some risks, how can we expect to see any financial growth?

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Von

1 year ago

I agree with Rosendo. If we avoid all risks, we might miss out on opportunities for growth.

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Rosendo

1 year ago

I think the best reason is B) It may lead to ineffective use of resources.

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