CGEIT · Question #507
Which of the following should be the PRIMARY consideration when implementing an emerging technology with unclear regulatory and compliance requirements?
The correct answer is C. Enterprise risk appetite. When introducing emerging technologies with uncertain regulatory landscapes, the primary consideration should be the organization's risk appetite to ensure the potential exposure aligns with acceptable risk levels.
Question
Which of the following should be the PRIMARY consideration when implementing an emerging technology with unclear regulatory and compliance requirements?
Options
- AEnterprise strategic plan
- BEnterprise architecture (EA) alignment
- CEnterprise risk appetite
- DBusiness impact analysis (BIA) results
How the community answered
(42 responses)- A5% (2)
- B10% (4)
- C83% (35)
- D2% (1)
Why each option
When introducing emerging technologies with uncertain regulatory landscapes, the primary consideration should be the organization's risk appetite to ensure the potential exposure aligns with acceptable risk levels.
While the enterprise strategic plan guides overall direction, it doesn't specifically address the immediate challenge of unclear regulatory risk for an emerging technology without first understanding the organization's tolerance for such risk.
Enterprise architecture alignment ensures technical consistency, but it does not address the fundamental question of whether the regulatory and compliance risks of an emerging technology are acceptable to the business.
Enterprise risk appetite defines the level of risk an organization is prepared to accept, pursue, or tolerate to achieve its objectives. With emerging technology and unclear regulatory/compliance requirements, the risk appetite is the primary lens through which to evaluate whether the potential unknown risks associated with legal and regulatory non-compliance are acceptable for the organization.
Business Impact Analysis (BIA) results focus on the impact of disruption to existing critical business functions, not directly on the unknown regulatory risks of implementing a new, emerging technology.
Concept tested: Emerging technology risk assessment
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