CGEIT Risk Optimization Practice Question
Why is it important to define risk appetite before developing a risk response plan?
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
✓
To provide a threshold for determining which risks require action.
Appetite acts as the boundary for decision-making.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
To provide a threshold for determining which risks require action.
Why this is correct
Risk response plans are triggered when risks exceed the appetite.
- ✗
To simplify the budget process for IT.
Why it's wrong here
Budgeting is a secondary activity to risk response.
- ✗
To automatically approve all low-impact risks.
Why it's wrong here
Risk management requires monitoring, even for low-impact risks.
- ✗
Because the government requires it by law.
Why it's wrong here
It is a governance best practice, not always a law.
About these practice questions
One of 214 original CGEIT practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. 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.