Section: Volume D

Section: Volume D

Explanation/Reference:
Explanation:
Systemic risks are those risks that happen with an important business partner and affect a large group of enterprises within an area or industry. An example would be a nationwide air traffic control system that goes down for an extended period of time (six hours), which affects air traffic on a very large scale.
Incorrect Answers:
A: Contagious risks are those risk events that happen with several of the enterprise's business partners within a very short time frame.
B, C: Their scopes do not limit to the important or general enterprise's business partners. These risks can occur with both.
Operational risks are those risks that are associated with the day-to-day operations of the enterprise. It is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.
Reporting risks are caused due to wrong reporting which leads to bad decision. This bad decision due to wrong report hence causes a risk on the functionality of the organization.

Section: Volume B
Explanation:
The result of risk analysis process is being communicated to relevant stakeholders. The steps that are involved in communication are:
* The results should be reported in terms and formats that are useful to support business decisions.
* Coordinate additional risk analysis activity as required by decision makers, like report rejection and scope adjustment
* Communicate the risk-return context clearly, which include probabilities of loss and/or gain, ranges, and confidence levels (if possible) that enable management to balance risk-return.
* Identify the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process.
* Provide decision makers with an understanding of worst-case and most probable scenarios, due diligence exposures and significant reputation, legal or regulatory considerations.
Incorrect Answers:
C: Communicate the negative impacts of events that drive response decisions as well as positive impacts of events that represent opportunities which should channel back into the strategy and objective setting process, for effective communication. Only negative impacts are not considered alone.