CGEIT Risk Optimization Practice Question
A firm has decided to pursue a high-risk innovation strategy. How should the enterprise risk appetite statement be adjusted to support this goal?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Establish a higher risk appetite for experimental initiatives with clear sunset clauses.
Governance bodies must define risk tolerance thresholds that allow for strategic agility while ensuring that excessive risk does not threaten core enterprise continuity.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Mandate that all innovation projects pass a legacy audit before approval.
Why it's wrong here
Legacy audits are irrelevant to the risk of new, innovative technology.
- ✗
Outsource the management of all new innovation projects to a third party.
Why it's wrong here
Outsourcing does not eliminate risk and often introduces new vendor risks.
- ✓
Establish a higher risk appetite for experimental initiatives with clear sunset clauses.
Why this is correct
This allows for calculated risks while putting boundaries around the duration and impact of those risks.
- ✗
Lower the threshold for all IT risk controls to ensure maximum security.
Why it's wrong here
This would stifle innovation and be counter-productive to the business strategy.
About these practice questions
This CGEIT question is part of Courseiva's 214-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed August 2026 · checked against the official ISACA exam blueprint
This CGEIT practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CGEIT exam.