Question 29
Domain 2 — Risk Identification, Assessment, and AnalysisWhat is the purpose of risk scenario development?
Correct answer: B
Explanation
Risk scenario development is used to imagine how a risk could unfold under varying circumstances, helping identify possible impacts and responses. It focuses on exploring how risks might materialize under different conditions, which supports better planning and decision-making.
Why each option is right or wrong
A. To predict the future with certainty
B. To explore how risks might materialize under different conditions
Risk scenario development is a forward-looking technique used in risk management to test how an identified risk could unfold if assumptions, controls, or external conditions change. It is not a statutory requirement with a fixed legal citation, fee, or deadline; rather, its purpose is to examine plausible variations in likelihood and impact so decision-makers can compare responses under different conditions.
C. To eliminate all risks
D. To avoid risk treatment