Which of the following BEST indicates a successful risk management practice?

A.
Overall risk is quantified

B.
Inherent risk is eliminated

C.
Residual risk is minimized

D.
Control risk is tied to business units

Explanation:

A successful risk management practice minimizes the residual risk to the organization. Choice A is
incorrect because the fact that overall risk has been quantified does not necessarily indicate the
existence of a successful risk management practice. Choice B is incorrect since it is virtually
impossible to eliminate inherent risk. Choice D is incorrect because, although the tying of control
risks to business may improve accountability, this is not as desirable as minimizing residual risk.