Explanation:
Near-miss events are operational risk events that did not result in a financial loss but had the potential to do so. In organizations with strong risk cultures, near misses are recorded and analyzed because they provide crucial information about systemic vulnerabilities, weaknesses in controls, and the potential consequences that were avoided. By analyzing these events, management can implement corrective actions before actual financial losses occur. Therefore, the correct option is C.
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Q.46 Why are near-miss occurrences included in the reporting of incidents in organizations with strong risk cultures?
A
To assess the cost of close calls.
B
To determine the importance of close calls.
C
To analyze the potential consequence that was unintentionally avoided.
D
To evaluate the frequency of close calls.
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