QuestionQ409

Risk Assessment

Which element of a risk register is MOST likely to change following a change in management’s risk appetite?

  • A Risk likelihood and impact
  • B Risk velocity
  • C Inherent risk
  • D Key risk indicator (KRI) thresholds
Explanation

Key risk indicator (KRI) thresholds define the levels at which risk exposure requires attention or escalation. Because those levels are based on management’s risk appetite and tolerance, a change in risk appetite is most likely to require changing the KRI thresholds.

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