Question 11
Domain 1 — Governance and Risk Management FrameworksWhat is the role of risk escalation?
Correct answer: B
Explanation
Risk escalation moves a risk to a higher decision-making level when it exceeds the current authority or tolerance. It ensures that risks "requiring higher authority" are handled by the "appropriate levels" for action, approval, or resources.
Why each option is right or wrong
A. To hide risks from management
B. To bring risks requiring higher authority to appropriate levels
Risk escalation is used when a risk cannot be managed within the current decision-making level and must be referred upward to the level with the authority to act. In governance terms, this means the issue is passed to the appropriate higher authority for decision, approval, or resource allocation rather than being left with the original owner.
C. To transfer all risks to the board
D. To eliminate the need for risk treatment