Which of the following is the BEST way to help ensure an organization's risk appetite will be considered as part of the risk treatment process?

Question

Options

• ARequire steering committee approval of risk treatment plans.
• BUse quantitative risk assessment methods.
• CConsult the risk register.
• DProvide regular reporting on risk treatment to senior management.

• A
  53% (16)
• B
  3% (1)
• C
  30% (9)
• D
  13% (4)

Explanation

Requiring steering committee approval of risk treatment plans ensures that the individuals who own and set the organization's risk appetite - senior leadership - review and validate treatment decisions before they are implemented. This governance control creates a direct link between risk appetite and treatment choices. Using quantitative methods (B) improves precision in risk assessment but does not inherently enforce risk appetite alignment. Consulting the risk register (C) is an input to treatment decisions, not a control that enforces risk appetite. Regular reporting to senior management (D) is a monitoring activity that happens after treatment decisions are made. Steering committee approval acts as a gate that prevents out-of-appetite decisions from being enacted.

No community discussion yet for this question.