Final answer:
Catastrophic risks should indeed be managed within the risk management planning process, as it is crucial to prepare for potential low-probability but high-impact events.
Step-by-step explanation:
The concepts depicted in the question relate to risk management, which is an essential part of effective business planning. Addressing the original question, the answer is A) True. Catastrophic risks must indeed be dealt with in the risk management planning process. The rationale provided underscores the importance of preparing for low-probability, high-consequence events.
The minimal downside of investing resources in contingency plans is far outweighed by the potential catastrophic consequences of failing to do so, thereby justifying the necessity to address such risks in planning. This is akin to the principle behind purchasing insurance; mitigating the impact of potentially life-altering events despite their low likelihood.