The management’s primary consideration when approving risk response action plans should be the changes in residual risk after implementing the plans. Residual risk is the level of risk that remains after the implementation of risk responses1. It indicates the degree of exposure or uncertainty that the organization still faces, and the potential impact or consequences of the risk events. The management should evaluate the effectiveness and adequacy of the risk responses, and decide whether the residual risk is acceptable or not2. The management should also compare the residual risk with the risk appetite, which is the amount and type of risk that the organization is willing to accept or pursue in order to achieve its objectives3. The management should ensure that the residual risk is aligned with the risk appetite, and that the risk responses are consistent and proportional to the risk level4.
The other options are not the primary consideration when approving risk response action plans, because:
Ability of the action plans to address multiple risk scenarios is a desirable but not essential criterion for approving risk response action plans. Risk scenarios are hypothetical situations that describe how a risk event could occur and what the consequences could be5. They can help to understand and communicate the nature and impact of the risks, and to design and evaluate the risk responses6. However, not all risk scenarios are equally likely or relevant, and some risk scenarios may be too complex or improbable to address. Therefore, the ability of the action plansto address multiple risk scenarios is not the primary consideration, but rather a secondary or supplementary one.
Ease of implementing the risk treatment solution is a practical but not critical criterion for approving risk response action plans. Risk treatment is the process of selecting and applying appropriate measures to modify the risk7. It can involve different strategies, such as avoid, reduce, transfer, or accept the risk8. The ease of implementing the risk treatment solution depends on various factors, such as the availability of resources, the feasibility of the solution, or the cooperation of the stakeholders. However, the ease of implementation is not the primary consideration, but rather a supporting or facilitating one.
Prioritization for implementing the action plans is a useful but not vital criterion for approving risk response action plans. Prioritization is the process of ranking the action plans according to their importance, urgency, or impact. It can help to allocate the resources, schedule the activities, and monitor the progress of the action plans. However, prioritization is not the primary consideration, but rather a subsequent or follow-up one.
References =
Residual Risk - CIO Wiki
What is Residual Risk? - Definition from Techopedia
Risk Appetite - CIO Wiki
Risk Appetite: What It Is and Why It Matters - Gartner
Risk Scenarios Toolkit - ISACA
Risk Scenarios Starter Pack - ISACA
Risk Treatment - CIO Wiki
Risk Treatment Plan - CIO Wiki
[Prioritization - CIO Wiki]
