Section: Volume B
Explanation:
The risk exposure for this event is found by multiplying the risk impact by the risk probability.
Risk Exposure is a straightforward estimate that gives a numeric value to a risk, enabling different risks to be compared.
Risk Exposure of any given risk = Probability of risk occurring x impact of risk event
= 0.70 * 350,000
= 245,000
Incorrect Answers:
A: $350,000 is the impact of the risk event.
B: $500,000 is the project's budget.
C: $850,000 is the project's budget and the risk's impact.

Section: Volume C
Explanation/Reference:
Explanation:
This is categorized as a Business case to be made because the project cost is very large. The response to be implemented requires quite large investment. Therefore it comes under business case to be made.
Incorrect Answers:
A: It addresses costly risk response to a low risk. But here the response is less costly than that of business case to be made.
B: Quick win is very effective and efficient response that addresses medium to high risk. But in this the response does not require large investments.
D: This is not risk response prioritization option, instead it is a type of risk that happen with the several of the enterprise's business partners within a very short time frame.

Section: Volume D

Section: Volume D
Explanation:
Control effectiveness requires a process to verify that the control process worked as intended and meets the intended control objectives.
Hence the test result of intended objective helps in verifying effectiveness of control.
Incorrect Answers:
A: Notification of failure does not determine control strength, hence this option is not correct.
B: The type of control, like preventive or detective, does not help determine control effectiveness.
C: Reliability is not an indication of control strength; weak controls can be highly reliable, even if they do not meet the control objective.