Question

In a CBA, if the benefits of a control outweigh the costs of implementing that control, then the control can be implemented to reduce risk. However, if the cost outweighs the benefit, then ______________.

Answer 1

Answer:

The risk should be accepted

Explanation:

CBA stands for cost-benefit analysis (CBA). it is a technique used in measuring the cost to an enterprise as well as the benefit that is associated with an intended course of action.

Some controls are costly to establish, it is a standard practice to measure the cost to an enterprise to establish control on a certain aspect of their operation and compare the result with the estimated benefit from such control. where it is discovered that the benefits outweigh the costs, the control will be implemented otherwise, the firm should accept the risk.