Escalating to senior management is the best course of action when an organization's stakeholders are unable to agree on appropriate risk responses. This is because senior management has the authority and responsibility to make strategic decisions and resolve conflicts regarding risk management. Senior management can also provide guidance and direction on the risk appetite, tolerance, and criteria for the organization, as well as allocate resources and assign roles and responsibilities for risk response. According to the CRISC Review Manual 2022, one of the key risk response techniques is to escalate the risk to senior management when the risk exceeds the acceptable level or when there is a disagreement on the risk response1. According to the CRISC Review Questions, Answers & Explanations Manual 2022, escalating to senior management is the correct answer to this question2.
Identifying a risk transfer option, reassessing risk scenarios, and benchmarking with similar industries are not the best courses of action when an organization's stakeholders are unable to agree on appropriate risk responses. These are possible actions that can be taken as part of the risk response process, but they do not address the underlying issue of stakeholder disagreement. Identifying a risk transfer option can help reduce or share the risk with a third party, such as an insurance company or a vendor, but it may not be suitable or acceptable for all types of risks or stakeholders. Reassessing risk scenarios can help update the risk analysis and evaluation, but it may not change the risk level or the risk response options. Benchmarking with similar industries can help compare the risk performance and practices of the organization with its peers, but it may not reflect the organization's specific needs or risks.