Certified in Risk and Information Systems Control (CRISC) — Question 76

An organization has raised the risk appetite for technology risk. The MOST likely result would be:

Answer options

• A. lower risk management cost
• B. decreased residual risk
• C. higher risk management cost
• D. increased inherent risk

Correct answer: A

Explanation

When an organization raises its risk appetite, it generally allows for more risk-taking, which often leads to a reduction in the costs associated with managing those risks. Options B and D are incorrect since a higher risk appetite typically does not decrease residual risk or inherently increase risk; rather, it allows for more acceptance of existing risks. Option C is also incorrect as increased risk appetite usually results in lower management costs, not higher.