Which document might a Risk Executive produce to address organizational risk?

• A. Security Assessment Report (SAR)
• B. Risk Assessment Report (RAR)
• C. Authorization Package
• D. System Design Document

Answer: (B)

A Risk Assessment Report (RAR) is specifically designed to identify, evaluate, and prioritize risks within an organization. This document typically details potential threats and vulnerabilities, assesses the impact and likelihood of different risks, and may provide recommendations for mitigating these risks. It allows a Risk Executive to present a comprehensive overview of the organization's risk profile, supporting informed decision-making that aligns with the organizational goals and regulatory frameworks.

The RAR plays a crucial role in risk management by establishing a baseline for risk tolerance and guiding resource allocation towards areas that require attention or improvement. It is essential for understanding how risks may affect business operations and ensuring that appropriate strategies are implemented to manage them effectively.

In contrast, other documents mentioned serve different purposes. For instance, a Security Assessment Report focuses on evaluating the effectiveness of security controls in place, while an Authorization Package is related to the process of granting approval for systems to process information. A System Design Document outlines the architecture and components of a system, which pertains more to technical specifications than to risk management. Thus, the RAR stands out as the appropriate document for addressing organizational risk directly.