The probability and consequences of failing to comply with laws, regulations, or ethical standards applicable to the industry describes which risk?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $9.99Unlock all

Master ISACA's IT Risk Fundamentals with our comprehensive test preparation. Dive into flashcards and multiple choice questions, complete with hints and explanations, and ensure you're fully prepared for your certification success.

Multiple Choice

The probability and consequences of failing to comply with laws, regulations, or ethical standards applicable to the industry describes which risk?

Explanation:
Compliance risk describes the probability and consequences of failing to comply with laws, regulations, or ethical standards that apply to the industry. This risk matters because noncompliance can lead to fines, sanctions, legal liability, business disruption, and damage to reputation. The other options don’t capture both the likelihood of noncompliance and its potential impact: a consequence is only the outcome, an audit is a process to assess controls, and environmental risk focuses on environmental issues rather than regulatory or ethical compliance.

Compliance risk describes the probability and consequences of failing to comply with laws, regulations, or ethical standards that apply to the industry. This risk matters because noncompliance can lead to fines, sanctions, legal liability, business disruption, and damage to reputation. The other options don’t capture both the likelihood of noncompliance and its potential impact: a consequence is only the outcome, an audit is a process to assess controls, and environmental risk focuses on environmental issues rather than regulatory or ethical compliance.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy