Certified in Risk and Information Systems Control (CRISC) — Question 578

Which of the following elements of a risk register is MOST likely to change as a result of change in management's risk appetite?

Answer options

• A. Risk likelihood and impact
• B. Risk velocity
• C. Inherent risk
• D. Key risk indicator (KRI) thresholds

Correct answer: D

Explanation

The correct answer is D because Key Risk Indicator (KRI) thresholds are directly influenced by management's risk appetite, which dictates how much risk they are willing to accept. In contrast, risk likelihood and impact (A), risk velocity (B), and inherent risk (C) are more stable factors that do not fluctuate as readily with changes in management's attitudes towards risk.