Which of the following processes is described in the statement below?
“It is the process of exchanging information and views about risks among stakeholders, such as
groups, individuals, and institutions.”
A.
Risk governance
B.
Risk identification
C.
Risk response planning
D.
Risk communication
Explanation:
Risk communication is the process of exchanging information and views about risks among
stakeholders, such as groups, individuals, and institutions. Risk communication is mostly
concerned with the nature of risk or expressing concerns, views, or reactions to risk managers or
institutional bodies for risk management. The key plan to consider and communicate risk is to
categorize and impose priorities, and acquire suitable measures to reduce risks. It is important
throughout any crisis to put across multifaceted information in a simple and clear manner.
Risk communication helps in switching or allocating the information concerning risk among the
decision-maker and the stakeholders. Risk communication can be explained more clearly with the
help of the following definitions:
It defines the issue of what a group does, not just what it says.
It must take into account the valuable element in user’s perceptions of risk.
It will be more valuable if it is thought of as conversation, not instruction.Risk communication is a fundamental and continuing element of the risk analysis exercise, and the
involvement of the stakeholder group is from the beginning. It makes the stakeholders conscious
of the process at each phase of the risk assessment. It helps to guarantee that the restrictions,
outcomes, consequence, logic, and risk assessment are undoubtedly understood by all the
stakeholders.
Answer C is incorrect. A risk response ensures that the residual risk is within the limits of the risk
appetite and tolerance of the enterprise. Risk response is process of selecting the correct,
prioritized response to risk, based on the level of risk, the enterprise’s risk tolerance and the cost
and benefit of the particular risk response option.
Risk response ensures that management is providing accurate reports on:
The level of risk faced by the enterprise
The incidents’ type that have occurred
Any alteration in the enterprise’s risk profile based on changes in the risk environment