In the SASB risk-management process, which phase guides decisions to accept, avoid, reduce, or transfer a risk (or to ignore, embrace, enhance, or share an opportunity) based on assessments and benchmarking?

In the SASB risk-management process, which phase guides decisions to accept, avoid, reduce, or transfer a risk (or to ignore, embrace, enhance, or share an opportunity) based on assessments and benchmarking?

• A. Respond
• B. Identify
• C. Assess
• D. Monitor

Answer: (A)

The phase that guides decisions on how to handle risks and opportunities using the results of assessments and benchmarking is the Respond phase. After risks are identified and evaluated and benchmarked against internal or external standards, this stage determines the actions to take: accept, avoid, reduce, or transfer the risk; and for opportunities, ignore, embrace, enhance, or share. It translates the assessment findings into concrete risk-treatment plans, resource allocation, and controls, setting the path for how the organization will address each risk or opportunity. This phase sits between assessing what’s happening and actively implementing and monitoring the chosen actions. Identifying risks is about spotting what could happen, and monitoring is about tracking changes over time, but neither is the step where you decide and implement the response. Assessing evaluates severity, not the final response strategy.

The phase that guides decisions on how to handle risks and opportunities using the results of assessments and benchmarking is the Respond phase. After risks are identified and evaluated and benchmarked against internal or external standards, this stage determines the actions to take: accept, avoid, reduce, or transfer the risk; and for opportunities, ignore, embrace, enhance, or share. It translates the assessment findings into concrete risk-treatment plans, resource allocation, and controls, setting the path for how the organization will address each risk or opportunity. This phase sits between assessing what’s happening and actively implementing and monitoring the chosen actions. Identifying risks is about spotting what could happen, and monitoring is about tracking changes over time, but neither is the step where you decide and implement the response. Assessing evaluates severity, not the final response strategy.