Which of the following BEST facilitates the identification of emerging risk?
A.
Performing scenario-based assessments
B.
Reviewing audit reports annually
C.
Conducting root cause analyses
D.
Engaging a risk-focused audit team
The Answer Is:
A
This question includes an explanation.
Explanation:
Performing scenario-based assessments is a proactive approach that allows organizations to anticipate potential future events and assess their impact. This method helps in identifying emerging risks by exploring hypothetical situations and their possible outcomes. It enables organizations to prepare for unforeseen events by understanding how different scenarios could affect their operations and objectives.