QuestionQ1257

Governance

Which of the following is MOST important to communicate to senior management during the initial implementation of a risk management program?

  • A Risk ownership
  • B Best practices
  • C Desired risk level
  • D Regulatory compliance
Explanation

The desired risk level, commonly expressed as risk appetite and risk tolerance, provides the basis for management decisions about which risks to accept, mitigate, transfer, or avoid and for setting risk-management priorities.

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