QuestionQ199

Risk Response and Reporting

What is the BEST course of action when a risk is identified as exceeding the acceptable risk appetite?

  • A Execute the risk response plan.
  • B Analyze the effectiveness of controls.
  • C Maintain the current controls.
  • D Review risk tolerance levels.
Explanation

A risk exposure above the approved risk appetite must be addressed through the organization’s defined risk response, such as mitigating, transferring, avoiding, or formally accepting it through the appropriate authority. Executing the risk response plan directly reduces or otherwise treats the excessive exposure.

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