Question

A manufacturing company identifies a risk that a legacy scheduling application, which lacks vendor support, could fail and halt production for up to two days. The risk owner calculates that the annualized loss expectancy is well below the board's documented risk tolerance for operational disruption. A replacement system is planned but will not be deployed for 18 months. What is the MOST appropriate risk response for the interim period?

Accepted Answer

Formally accept the risk with documented management approval and continue monitoring until the replacement is deployed

Answer

Immediately fund an emergency full replacement to eliminate the risk before the planned timeline

Answer

Transfer the risk entirely by purchasing business interruption insurance to cover any downtime

Answer

Avoid the risk by decommissioning the legacy application until the replacement is ready