QuestionQ115

Risk Response and Reporting

Which of the following serves as a trigger for the risk response process?

  • A Risk level increases above risk appetite
  • B Risk level increase above risk tolerance
  • C Risk level equates risk appetite
  • D Risk level equates the risk tolerance
Explanation

Risk response is triggered when evaluated risk exceeds the enterprise’s risk tolerance. Risk tolerance defines the acceptable variation relative to achieving an objective, so a level above it requires a response to return residual risk to an acceptable range. Risk appetite is a broader strategic boundary and is not the specific operational trigger in this context.

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