Question

Management is reviewing the results of a recent risk assessment of the organization's policies and procedures. During the risk assessment it is determined that procedures associated with background checks have not been effectively implemented. In response to this risk, the organization elects to revise policies and procedures related to background checks and use a third-party to perform background checks on all new employees.

Which of the following risk management strategies has the organization employed?

A. Transfer
B. Mitigate
C. Accept
D. Avoid
E. Reject

Answer 1

The organization has opted for a risk management strategy called Transfer, using a third-party service to handle background checks, reducing their own risk exposure.

Step-by-step explanation:

The organization has employed the risk management strategy of Transfer. When they decide to use a third-party to perform background checks, they are transferring the risk associated with conducting background checks internally to another entity. This helps to ensure that the background checks are performed more effectively, thereby reducing the organization's exposure to the risk posed by improper background check procedures.

The organization has employed the risk management strategy of mitigate. By revising policies and procedures related to background checks and using a third-party to perform the checks, the organization is taking action to reduce the risk associated with ineffective background check implementation.

By mitigating the risk, the organization is actively working to minimize the potential negative impact of not effectively implementing background check procedures. This proactive approach can help the organization enhance its risk management practices and ensure compliance with relevant regulations and standards.