ExpertMedium1 markMultiple Choice
CPA · Question 06 · Area I: Information Systems
In the context of COSO Enterprise Risk Management, which principle is most relevant when an organization evaluates the risks associated with migrating its core financial system to the cloud?
In the context of COSO Enterprise Risk Management, which principle is most relevant when an organization evaluates the risks associated with migrating its core financial system to the cloud?
Answer options:
A.
Attracts, develops, and retains capable individuals
B.
Identifies and analyzes risk
C.
Demonstrates commitment to core values
D.
Establishes operating structure
How to approach this question
Connect the activity (evaluating migration) to the risk management component.
Full Answer
B.Identifies and analyzes risk✓ Correct
Identifies and analyzes risk
The principle of identifying and analyzing risk involves assessing the potential impact of changes, such as cloud migration, on the achievement of objectives.
Common mistakes
Selecting governance-related principles instead of risk assessment.
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