Explanation:
In this scenario, the Chief Risk Officer (CRO) should coordinate with various departments to ensure that all potential risks of the new inventory management system are identified, assessed, and managed effectively. This involves working with the IT department for data security risks, the supply chain team for operational risks, and perhaps the finance team for any financial implications. By doing so, the CRO ensures that risk management responsibilities are appropriately distributed, and that each department addresses risks relevant to their expertise. Additionally, the CRO should maintain an overarching risk management strategy to ensure cohesion and alignment with the organization's overall risk tolerance and objectives.
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Q.5792 A large retail chain is implementing a new inventory management system. This system is expected to significantly streamline operations but introduces new risks, particularly in terms of data security and supply chain disruptions. The Chief Risk Officer (CRO) of the company is tasked with overseeing the risk management process for this implementation. Which of the following actions by the CRO best aligns with defining risk management responsibilities in this scenario?
A
Focusing exclusively on the financial risks associated with the cost of the new system.
B
Delegating all risk management responsibilities to the IT department, as the new system is technology-based.
C
Coordinating with various departments to identify, assess, and manage risks specific to their areas while maintaining an overall risk management strategy.
D
Outsourcing the risk assessment of the new system to an external consultant and following their recommendations strictly.