Which of the following is MOST likely to promote ethical and open communication of risk management activities at the executive level?

Which of the following is MOST likely to promote ethical and open communication of risk management activities at the executive level?
A . Recommending risk tolerance levels to the business
B . Expressing risk results in financial terms
C . Increasing the frequency of risk status reports

View Answer

Answer: B

Explanation:

Expressing risk results in financial terms is most likely to promote ethical and open communication of risk management activities at the executive level. This is because financial metrics are universally understood and can clearly illustrate the impact of risks on the organization. By translating risk into financial terms, executives can more easily comprehend the severity and potential consequences of various risks, facilitating informed decision-making and fostering transparency. It also allows for a common language between different departments and stakeholders, enhancing clarity and reducing misunderstandings. This practice is emphasized in frameworks like ISO 31000 and is a key aspect of effective risk communication.