Question

A manufacturing company's board recently approved an aggressive expansion into a new geographic market. Six months later, the risk practitioner notices that the enterprise risk profile now shows significantly elevated exposure in supply chain, currency, and regulatory compliance areas that were minor before the expansion. What is the MOST important action for the risk practitioner to take?

Accepted Answer

Communicate the updated risk profile to senior management and the board so they can reassess whether the current strategy and risk appetite remain aligned

Answer

Immediately implement additional controls to reduce the elevated supply chain, currency, and regulatory exposures to prior levels

Answer

Document the changes in the risk register and continue monitoring until the next scheduled annual review

Answer

Recommend that the board halt the expansion until all new risks are brought within tolerance