CompTIA SecurityX (CAS-005) — Question 165

Which of the following best explains the importance of determining organizational risk appetite when operating with a constrained budget?

Answer options

• A. Risk appetite directly impacts acceptance of high-impact, low-likelihood events.
• B. Organizational risk appetite varies from organization to organization.
• C. Budgetary pressure drives risk mitigation planning in all companies.
• D. Risk appetite directly influences which breaches are disclosed publicly.

Correct answer: A

Explanation

Answer A is correct because understanding risk appetite helps organizations determine which high-impact, low-likelihood risks they can accept within budget constraints. The other options, while relevant to risk management, do not directly address the importance of risk appetite in the context of budget limitations.