Certified in Risk and Information Systems Control (CRISC) — Question 680
Which of the following statements BEST describes risk appetite?
Answer options
- A. Acceptable variation between risk thresholds and business objectives
- B. The amount of risk an organization is willing to accept
- C. The effective management of risk and internal control environments
- D. The acceptable variation relative to the achievement of objectives
Correct answer: B
Explanation
The correct answer, B, identifies risk appetite as the level of risk an organization is willing to accept, which directly relates to decision-making processes. Options A, C, and D describe aspects of risk management or control but do not specifically address the concept of risk appetite.