Which of the following should be considered to ensure that risk responses that are adopted are cost-effective and are aligned with business objectives? Each correct answer represents a part of the solution. Choose three. 

Answer options:

A. Identify the risk in business terms
B. Recognize the business risk appetite
C. Adopt only pre-defined risk responses of business
D. Follow an integrated approach in business

ABD

Risk responses require a formal approach to issues, opportunities and events to ensure that solutions are cost-effective and are aligned with business objectives. The following should be considered: ✑ While preparing the risk response, identify the risk in business terms like loss of productivity, disclosure of confidential information, lost opportunity costs, etc. ✑ Recognize the business risk appetite. ✑ Follow an integrated approach in business. Risk responses requiring an investment should be supported by a carefully planned business case that justifies the expenditure outlines alternatives and describes the justification for the alternative selected. Incorrect Answers: C: There is no such requirement to follow the pre-defined risk responses. If some new risk responses are discovered during the risk management of a particular project, they should be noted down in lesson leaned document so that project manager working on some other project could also utilize them.