CRISC IT Risk Identification Practice Question
An organization's board has issued a risk appetite statement indicating that the company is willing to accept a moderate level of operational risk but has zero tolerance for compliance violations. This statement primarily defines which of the following?
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
✓
Risk appetite
Risk appetite is the amount of risk the organization is willing to accept in pursuit of its objectives. The board's statement sets the overall appetite for different risk categories.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Risk tolerance thresholds
Why it's wrong here
Risk tolerance is the acceptable level of variation around risk appetite, not the appetite itself.
- ✗
Risk criteria
Why it's wrong here
Risk criteria are used to evaluate risk significance, not the willingness to accept.
- ✓
Risk appetite
Why this is correct
This statement defines the organization's risk appetite for operational and compliance risks.
- ✗
Risk capacity
Why it's wrong here
Risk capacity is the maximum risk the organization can absorb, not the willingness to accept.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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