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NEW QUESTION: 1
Acceptable risk is achieved when:
A. control risk is minimized.
B. inherent risk is minimized.
C. residual risk is minimized.
D. transferred risk is minimized.
Answer: C
Explanation:
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.