Which risk assessment matrix component evaluates likelihood and severity impact of potential financial loss events?
AControl Environment
BRisk Avoidance
CRisk Assessment
DInformation Monitoring
Explanation
* Risk Assessment involves identifying and analyzing internal and external risks to achieving operational and financial objectives.
* Evaluates both likelihood (probability) and potential impact (severity).
* Key element of the COSO Risk Management Framework.
Exam Relevance
- Topic: Auditing & Risk Management
- Subtopic: Risk Frameworks

No Comments