Certified in Risk and Information Systems Control (CRISC) — Question 831

Which of the following is MOST influential when management makes risk response decisions?

Answer options

• A. Detection risk
• B. Risk appetite
• C. Audit risk
• D. Residual risk

Correct answer: B

Explanation

Risk appetite is the level of risk that an organization is willing to accept, making it the most crucial factor in guiding management's risk response decisions. Detection risk, audit risk, and residual risk are important, but they are secondary considerations that depend on the defined risk appetite.