QuestionQ667

Risk Response and Reporting

The goal of aligning mitigating controls with risk appetite is to ensure that:

  • A exposures are reduced to the fullest extent.
  • B insurance costs are minimized.
  • C exposures are reduced only for critical business systems.
  • D the cost of controls does not exceed the expected loss.
Explanation

Risk appetite requires risk treatment to be proportionate to the organization’s accepted level of risk and economically justified. A control whose cost exceeds the expected loss is not a cost-effective mitigation.

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