Certified in the Governance of Enterprise IT (CGEIT) — Question 95

What information is MOST important to include when reporting key risk indicators to the board of directors?

Answer options

• A. The effect of emerging risk trends on current risk exposure
• B. Risk appetite, risk threshold and risk tolerance
• C. Classification of current business risk
• D. Costs and resource needs related to risk mitigation measures

Correct answer: A

Explanation

The correct answer, A, highlights the importance of understanding how new risk trends impact current exposures, which is vital for informed decision-making at the board level. Options B, C, and D, while relevant, focus on static metrics or classifications rather than the dynamic nature of emerging risks that the board needs to prioritize.