Enterprise architecture (EA) documentation provides the most useful information to trace the impact of aggregated risk across the organization's technical environment, because it describes the structure and behavior of the organization's IT systems, applications, infrastructure, and processes, and how they support and enable the organization's strategy and objectives. EA documentation also defines the principles, standards, and guidelines that govern the design and implementation of the IT solutions and services.
Aggregated risk is the total or combined level of risk that the organization faces from multiple or interrelated sources or scenarios. Aggregated risk may have a greater impact than the sum of the individual risks, due to the synergistic or compounding effects of the risks. The technical environment is the set of IT components and capabilities that support the organization's business functions and processes. Tracing the impact of aggregated risk across the technical environment is a process of identifying and assessing the potential or actual consequences of the aggregated risk on the performance, functionality, or security of the IT systems, applications, infrastructure, or processes. EA documentation provides the most useful information, as it helps to understand and analyze the interdependencies and relationships of the IT components and capabilities, and to evaluate the effect of the aggregated risk on the alignment and integration of IT with the organization's strategy and objectives. Business case documentation, organizational risk appetite statement, and organizational hierarchy are all possible sources of information to trace the impact of aggregated risk, but they are not the most useful information, as they do not provide a comprehensive and detailed view of the technical environment and its architecture. References = Risk and Information Systems Control Study Manual, Chapter
5, Section 5.2.1, page 183

Section: Volume B
Explanation/Reference:
Explanation:
The risk exposure for this event is found by multiplying the risk impact by the risk probability.
Risk Exposure is a straightforward estimate that gives a numeric value to a risk, enabling different risks to be compared.
Risk Exposure of any given risk = Probability of risk occurring x impact of risk event
= 0.70 * 350,000
= 245,000
Incorrect Answers:
A: $350,000 is the impact of the risk event.
B: $500,000 is the project's budget.
C: $850,000 is the project's budget and the risk's impact.

Section: Volume D

Residual risk is the risk that remains after the implementation of risk responses. An effective risk management program should aim to reduce the residual risk to a level that is acceptable by the enterprise, in alignment with its risk appetite and tolerance. The reduction of residual risk indicates that the risk responses are appropriate and effective, and that the enterprise is achieving its objectives while managing its risks. The other options are not necessarily indicative of an effective risk management program, as they may depend on other factors, such as the reporting culture, the audit scope and methodology, and the nature and source of the inherent risk. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 1, Section
1.2.3.1, pp. 24-25.