Acceptable risk is achieved when:
A.
residual risk is minimized.
B.
transferred risk is minimized.
C.
control risk is minimized.
D.
inherent risk is minimized.
Explanation:
Residual risk is the risk that remains after putting into place an effective risk management
program; therefore, acceptable risk is achieved when this amount is minimized. Transferred risk is
risk that has been assumed by a third party and may not necessarily be equal to the minimal form
of residual risk. Control risk is the risk that controls may not prevent/detect an incident with a
measure of control effectiveness. Inherent risk cannot be minimized.