Certified in Risk and Information Systems Control (CRISC) — Question 746

The BEST indication that risk management is effective is when risk has been reduced to meet:

Answer options

• A. risk appetite
• B. risk capacity
• C. risk levels
• D. risk budgets

Correct answer: A

Explanation

The correct answer is A, as risk appetite refers to the amount of risk an organization is willing to accept, and effective risk management ensures that risks are within this limit. Options B, C, and D do not accurately reflect the organization’s willingness to tolerate risk, which is the core focus of risk appetite.