ITPEC IP April 2025 Question 68

Source exam: ITPEC IP April 2025Topic: Corporate Activities

ITPEC IP April 2025 — Question 68 of 100

Risk analysis — risk assessment consists of risk identification, risk analysis, and risk evaluation.

Identification finds and describes risks. Analysis estimates their likelihood, consequences, and level. Evaluation compares the analyzed results with criteria to decide which risks require treatment and their priority. Transfer, avoidance, and reduction occur later as risk-treatment choices.

Answer (d)

Why not others:
- (a) Risk transfer shares consequences with another party

- (b) Risk avoidance stops or changes the risky activity

- (c) Risk reduction applies controls to lower likelihood or impact

Key rule: Assess before treating: identify what can happen, analyze likelihood and impact, evaluate significance, and then choose a treatment.

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