QuestionQ1736

Risk Assessment

What should a risk practitioner verify first after an acquisition of another company has been confirmed?

  • A Impact of compliance and regulatory requirements
  • B Whether currently identified risk items need updating
  • C The alignment of the risk appetite and tolerance levels
  • D The risk management approaches
Explanation

Risk appetite and tolerance define the amount and variation of risk an enterprise is willing to accept in pursuing its objectives. Because an acquisition can materially change the enterprise’s risk exposure and objectives, the combined organization’s risk position must be aligned with those boundaries before updating detailed risk records or adapting risk-management approaches.

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