CRISC · Question #210
An organization recently configured a new business division Which of the following is MOST likely to be affected?
The correct answer is A. Risk profile. The establishment of a new business division will most likely affect an organization's overall risk profile due to the introduction of new operations, assets, and exposures.
Question
An organization recently configured a new business division Which of the following is MOST likely to be affected?
Options
- ARisk profile
- BRisk culture
- CRisk appetite
- DRisk tolerance
How the community answered
(38 responses)- A76% (29)
- B3% (1)
- C8% (3)
- D13% (5)
Why each option
The establishment of a new business division will most likely affect an organization's overall risk profile due to the introduction of new operations, assets, and exposures.
A new business division introduces novel processes, technologies, assets, markets, and potentially new regulatory compliance requirements. These additions inherently change the organization's overall exposure to various threats and vulnerabilities, thereby directly altering and impacting its comprehensive risk profile.
While a new division might subtly influence the organization's risk culture over time, the immediate and most direct impact is on the tangible risks and exposures that constitute the risk profile.
Risk appetite is a strategic decision set at the leadership level and typically remains stable unless there is a fundamental shift in the organization's overall strategy or its willingness to accept risk.
Risk tolerance defines the acceptable deviation from achieving objectives; while a new division may push existing tolerances, the *profile* of the risks themselves is more immediately and directly affected.
Concept tested: Impact of organizational change on risk
Source: https://learn.microsoft.com/en-us/compliance/regulatory/risk-management-framework-overview
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