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CISM · Question #76

Which of the following should have the MOST influence on an organization's response to a new industry regulation?

The correct answer is D. The organization's risk appetite. An organization's risk appetite should primarily influence its response to new industry regulations, as it dictates the level of risk the organization is willing to accept or mitigate to achieve compliance.

Submitted by jordan8· Apr 18, 2026Information Security Governance

Question

Which of the following should have the MOST influence on an organization's response to a new industry regulation?

Options

  • AThe organization's risk control baselines
  • BThe organization's control objectives
  • CThe organization's risk management framework
  • DThe organization's risk appetite

How the community answered

(26 responses)
  • A
    8% (2)
  • B
    19% (5)
  • C
    15% (4)
  • D
    58% (15)

Why each option

An organization's risk appetite should primarily influence its response to new industry regulations, as it dictates the level of risk the organization is willing to accept or mitigate to achieve compliance.

AThe organization's risk control baselines

Risk control baselines are specific sets of controls selected to meet a certain level of security, but the *decision* to adopt those baselines or how strictly to adhere to them is influenced by risk appetite.

BThe organization's control objectives

Control objectives define desired outcomes of security controls, but they don't dictate *how* aggressively or leniently the organization will pursue those outcomes in response to new regulations.

CThe organization's risk management framework

A risk management framework provides the structure and processes for managing risk, but the *decisions* made within that framework are guided by the organization's risk appetite.

DThe organization's risk appetiteCorrect

An organization's risk appetite defines the amount of risk it is willing to take to achieve its objectives. When faced with a new regulation, the organization will assess the associated risks and determine its response based on its predefined risk appetite, guiding its investment in compliance efforts.

Concept tested: Impact of risk appetite on regulatory response

Source: https://learn.microsoft.com/en-us/compliance/regulatory/risk-management-framework

Topics

#Risk Appetite#Regulatory Compliance#Information Security Governance#Strategic Risk Management

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