CRISC Question #210: Real Exam Question with Answer & Explanation

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

Explanation

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.

Common mistakes.

• B. 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.
• C. 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.
• D. 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

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

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