When it comes to optimizing a portfolio, how can risk reports be used?

As a portfolio manager, you have been reporting the progress, status and performance regularly and you have been doing a good job so far. Reports are the primary documents to communicate portfolio status and be able to balance the mix of portfolio components to best align with objectives.

When it comes to optimizing a portfolio, how can risk reports be used?
A . To be able to analyze occurred risks and cancel any component who has an increased risk
B . To be able to define the organization risk tolerance and update the Strategic Plan accordingly
C . To know about major risks and occurred issues in relation with the portfolio components
D . To assess achieved value and the confidence level in it

Answer: C