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After creating a plan for outsourcing to a cloud service provider to store their confidential information in cloud, OrgX decided to not pursue this business strategy since the risk of doing so was high. Which risk treatment option did OrgX use?
Suggested Answer: A
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OrgX decided not to pursue a business strategy involving outsourcing to a cloud service provider due to the high risk. This decision reflects a 'risk avoidance' strategy, where the organization chooses not to engage in an activity that poses unacceptable risks. This aligns with option A.
29 comments · newest first
KE
Kenda
10 months ago
Definitely a smart move to avoid that risk!
MA
Madonna
11 months ago
Wait, are they really just avoiding it? Seems risky too!
LA
Lashaun
11 months ago
I thought they might share the risk instead.
GA
Gail
11 months ago
Totally agree, better safe than sorry!
ZA
Zachary
11 months ago
Sounds like they went with risk avoidance.
HA
Haydee
12 months ago
I thought risk modification was about changing the plan to reduce risk, but OrgX just walked away from it, right? So, it must be avoidance.
MA
Malissa
12 months ago
I feel like this is a classic case of risk avoidance since they opted out of the strategy altogether.
CA
Cathrine
12 months ago
I'm not entirely sure, but I remember a practice question where risk sharing was about partnering with another company. That doesn't seem to fit here.
TI
Tiera
1 year ago
I think OrgX chose risk avoidance because they decided not to go through with the outsourcing plan due to high risks.
BE
Belen
1 year ago
I think I've got the right approach. OrgX chose not to take on the risk, so the answer is risk avoidance. I'm feeling confident about this one.
AN
Angella
1 year ago
I'm a little confused here. Is risk avoidance the same as not pursuing a risky strategy? I want to make sure I'm interpreting this correctly.
LA
Lauran
1 year ago
Okay, I've got this. Since OrgX decided not to pursue the cloud storage strategy due to high risk, the answer must be risk avoidance.
TI
Tijuana
1 year ago
Hmm, I'm a bit unsure about this one. I need to make sure I understand the difference between the risk treatment options before selecting an answer.
MA
Madonna
1 year ago
This seems like a straightforward risk management question. I'll carefully review the options and think through the scenario to determine the appropriate risk treatment.
TW
Twana
1 year ago
I'm pretty sure the answer is D. The cash flow statement using the direct method is not based on general ledger accounts, unlike the other options.
MI
Michael
2 years ago
Interesting choice. I wonder if they considered hiring a professional cloud whisperer to tame the cloud demons.
MA
Marlon
2 years ago
C) Risk modification
VI
Viva
2 years ago
B) Risk sharing
BE
Beula
2 years ago
A) Risk avoidance
SU
Sue
2 years ago
Risk avoidance, huh? Looks like they took the 'no risk, no reward' motto a little too literally.
LA
Lacresha
2 years ago
True, but they must have had good reasons for not taking the risk.
VA
Vallie
2 years ago
Yeah, they played it safe. Maybe they missed out on potential benefits.
CA
Carlee
2 years ago
OrgX decided to not pursue outsourcing to a cloud service provider. They chose risk avoidance.
RE
Renea
2 years ago
I agree. It's better to avoid the risk altogether than to take a chance and potentially face consequences.
AR
Ariel
2 years ago
Ah, the good old risk avoidance. Guess OrgX wasn't feeling adventurous enough to play cloud roulette.
BO
Bobbye
2 years ago
Yeah, it's always important to weigh the risks before diving in.
AR
Arlie
2 years ago
OrgX made the right call, better safe than sorry.
JU
Jutta
2 years ago
I think that was a wise decision. The risk of storing confidential information in the cloud can be high.
EL
Eliz
2 years ago
OrgX used risk avoidance.