Which of the following risks refer to probability that an actual return on an investment will be lower than the investor’s expectations?

Which of the following risks refer to probability that an actual return on an investment will be lower than the investor’s expectations?
A . Integrity risk
B . Project ownership risk
C . Relevance risk
D . Expense risk

View Answer

Answer: D

Explanation:

Probability that an actual return on an investment will be lower than the investor’s expectations is termed as investment risk or expense risk. All investments have some level of risk associated with it due to the unpredictability of the market’s direction. This includes consideration of the overall IT investment portfolio.

Incorrect Answers:

A: The risk that data cannot be relied on because they are unauthorized, incomplete or inaccurate is termed as integrity risks.

B: The risk of IT projects failing to meet objectives due to lack of accountability and commitment is referring to as project risk ownership.

C: The risk associated with not receiving the right information to the right people (or process or systems) at the right time to allow the right action to be taken is termed as relevance risk.