Question 22
Domain 3 — Risk Response and ReportingWhat is the primary benefit of automating risk reporting?
Correct answer: B
Explanation
Automating risk reporting speeds up the collection and distribution of risk data, which improves timeliness. It also reduces manual errors and applies the same process each time, leading to greater accuracy and consistency of risk information.
Why each option is right or wrong
A. Eliminating the need for risk analysts
B. Improved timeliness, accuracy, and consistency of risk information
Automated risk reporting is designed to shorten the reporting cycle by pulling data and generating reports on a scheduled or real-time basis, so the information reaches decision-makers faster than manual compilation. By removing repeated manual entry and spreadsheet handling, it also reduces transcription and calculation errors and applies the same reporting logic every time, which improves the reliability and comparability of the risk data.
C. Reducing the number of risks to report
D. Avoiding regulatory requirements