CISM · Question #823
Defining risk appetite PRIMARILY helps an organization to:
The correct answer is B. determine appropriate treatment options. Risk appetite defines the amount and type of risk an organization is willing to accept in pursuit of its objectives. This directly informs risk treatment decisions: knowing what is acceptable versus unacceptable guides whether a given risk should be accepted, mitigated…
Question
Defining risk appetite PRIMARILY helps an organization to:
Options
- Aunderstand risk analysis results.
- Bdetermine appropriate treatment options.
- Cidentify appropriate risk owners.
- Ddemonstrate continuous improvement.
How the community answered
(32 responses)- A6% (2)
- B88% (28)
- C3% (1)
- D3% (1)
Explanation
Risk appetite defines the amount and type of risk an organization is willing to accept in pursuit of its objectives. This directly informs risk treatment decisions: knowing what is acceptable versus unacceptable guides whether a given risk should be accepted, mitigated, transferred, or avoided. Without a defined risk appetite, there is no rational basis for choosing treatment options. While risk appetite contributes context for understanding analysis results (A) and identifying owners (C), its primary value is in setting the threshold that determines which risks need action and what level of treatment is appropriate.
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