CAS-005 · Question #88
Which of the following best explains the importance of determining organization risk appetite when operating with a constrained budget?
The correct answer is A. Risk appetite directly impacts acceptance of high-impact low-likelihood events. Risk appetite defines the level of risk an organization is willing to accept. When budgets are constrained, understanding this threshold is essential to prioritize resources and determine whether to accept, mitigate, or transfer high-impact, low-likelihood risks.
Question
Which of the following best explains the importance of determining organization risk appetite when operating with a constrained budget?
Options
- ARisk appetite directly impacts acceptance of high-impact low-likelihood events.
- BOrganizational risk appetite varies from organization to organization
- CBudgetary pressure drives risk mitigation planning in all companies
- DRisk appetite directly influences which breaches are disclosed publicly
How the community answered
(40 responses)- A88% (35)
- B3% (1)
- C8% (3)
- D3% (1)
Explanation
Risk appetite defines the level of risk an organization is willing to accept. When budgets are constrained, understanding this threshold is essential to prioritize resources and determine whether to accept, mitigate, or transfer high-impact, low-likelihood risks.
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