ISC2 CISSP Practice Question

External risk reporting involves communicating risk-related information to parties outside the organization such as regulators, shareholders, customers, and business partners. This type of reporting typically focuses on compliance requirements, regulatory obligations, and public disclosures. It tends to be more formal and standardized than internal reporting, often following specific frameworks or templates required by regulatory bodies.

The correct answer distinguishes external reporting as communication directed to parties outside the organization. Internal risk reporting, by contrast, is directed to stakeholders within the organization such as executives, board members, and department heads, and typically contains more detailed technical information and specific mitigation strategies than would be appropriate for external consumption.