When residual risk is minimized:

A.
acceptable risk is probable.

B.
transferred risk is acceptable.

C.
control risk is reduced.

D.
risk is transferable.

Explanation:

Since residual risk is the risk that remains after putting into place an effective risk management
program, it is probable that the organization will decide that it is an acceptable risk if sufficiently
minimized. Transferred risk is risk that has been assumed by a third party, therefore its magnitude
is not relevant. Accordingly, choices B and D are incorrect since transferred risk does not
necessarily indicate whether risk is at an acceptable level. Minimizing residual risk will not reduce
control risk.