Certified in Risk and Information Systems Control (CRISC) — Question 901

An organization's chief information officer (CIO) has proposed investing in a new, untested technology to take advantage of being first to market. Senior management has concerns about the success of the project and has set a limit for expenditures before final approval. This conditional approval indicates the organization's risk:

Answer options

• A. management capability
• B. capacity
• C. treatment strategy
• D. appetite

Correct answer: D

Explanation

The correct answer is 'appetite' because it refers to the level of risk the organization is willing to take on. The spending limit indicates that while there is interest in the project, the organization is cautious about how much it is ready to invest, reflecting a measured risk appetite. The other options do not accurately capture the idea of risk tolerance in this context.