Question

A manufacturing company has identified a risk that a specialized legacy control system could fail, halting production for up to 48 hours. The risk owner has four viable response options on the table, each with different cost and residual-risk profiles. The organization's risk appetite statement permits limited production downtime but has zero tolerance for exceeding regulatory emissions limits, which the legacy system also enforces. When selecting the most appropriate risk response, what should the risk owner prioritize FIRST?

Accepted Answer

Selecting the option whose resulting residual risk best aligns with the organization's risk appetite and tolerance

Answer

Selecting the option with the lowest implementation and ongoing operational cost

Answer

Selecting the option that most quickly restores production capacity after a failure

Answer

Selecting the option preferred by the production department as the primary affected stakeholder