Certified in Risk and Information Systems Control (CRISC) — Question 1411

Prudent business practice requires that risk appetite not exceed:

Answer options

• A. risk capacity.
• B. inherent risk.
• C. risk tolerance.
• D. residual risk.

Correct answer: A

Explanation

The correct answer is A, as risk capacity represents the maximum level of risk an organization can take on, ensuring that it remains within its means. Options B, C, and D are incorrect because they reference different aspects of risk management that do not define the upper limit of acceptable risk for business practices.