Certified Governance Risk and Compliance (CGRC) Practice Exam 2025 - Free CGRC Practice Questions and Study Guide

In risk management, a 'watchlist' specifically refers to a list of low priority risks that still require monitoring over time. These risks may not pose an immediate threat to the organization but could develop into more significant issues if not observed. By keeping them on the watchlist, organizations ensure that they maintain awareness and can proactively address any changes in the risk landscape.

This concept is important in a risk management framework because not all identified risks necessitate immediate action or resources. Instead, some may require ongoing observation to evaluate any emerging patterns or changes that could elevate their status to a more critical concern. Thus, rather than dismissing these lower-priority risks, the watchlist allows organizations to manage their resources effectively by focusing on more immediate threats while still tracking those that might need attention in the future.

The other options each serve distinct purposes in risk management but do not accurately capture the essence of a watchlist. Identified risks encompass all potential risks, high-impact risks focus on those needing urgent action, and stakeholder lists involve individuals rather than the nature of risks themselves.