ISACA CRISC: Importance of Senior Management’s Risk Appetite in Top-Down Risk Scenarios

Learn why senior management’s risk appetite is crucial in creating top-down risk scenarios. Improve your risk management and decision-making.

Question

Which of the following is MOST important to identify when developing top-down risk scenarios?

A. Hypothetical scenarios
B. Key procedure control gaps
C. Senior management’s risk appetite
D. Business objectives

Answer

C. Senior management’s risk appetite

Explanation

The most important factor to identify when developing top-down risk scenarios is C. Senior management’s risk appetite. This is because the level of risk that senior management is willing to accept while pursuing business objectives determines the types of risks that the organization should consider. Understanding the organization’s risk appetite helps in developing appropriate risk scenarios, which in turn aids in informed decision-making and effective risk management.

ISACA CRISC certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the ISACA CRISC exam and earn ISACA CRISC certification.