Discover how an organization increasing its risk appetite is most likely to lead to more opportunities in this expert-written explanation of a sample CISA certification exam question.
Table of Contents
Question
Which of the following is MOST likely to increase if an organization increases its risk appetite?
A. Audit findings
B. Key controls
C. Opportunities
D. Security incidents
Answer
C. Opportunities
Explanation
If an organization increases its risk appetite, it means they are willing to take on more risk in pursuit of their objectives. This is most likely to increase:
C. Opportunities
When an organization has a higher risk appetite, it is more open to pursuing new ventures, markets, partnerships, innovations and growth strategies that have the potential for high rewards but also carry more inherent risk. By being less risk-averse, the organization can capitalize on a greater number of opportunities that align with its goals.
In contrast:
A) Audit findings are more likely to decrease, as auditors focus on higher risk areas
B) Key controls put guardrails around risks and may be loosened but not increased
D) Security incidents could potentially increase with more risk-taking, but many other factors impact incidents whereas opportunities are directly expanded by greater risk appetite
Therefore, increasing risk appetite has the most direct impact on increasing the opportunities an organization is willing to pursue. The key is balancing the pursuit of opportunities with prudent risk management practices.
ISACA CISA certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the ISACA CISA exam and earn ISACA CISA certification.