QuestionQ15Verified/Risk Assessment and AnalysisCopy linkReport a problemAsk AstroTutorSave questionWhich of the following poses the GREATEST risk to an enterprise’s continued existence?AWhen its risk appetite and tolerance are reviewed annuallyBWhen its actual risk eventually exceeds organizational risk appetiteCWhen its risk appetite and actual risk exceed its risk capacityShow AnswerAnswerExplanationRisk capacity is the maximum level of risk an enterprise can withstand without jeopardizing its viability. Actual risk that exceeds risk capacity can threaten the enterprise’s survival; exceeding risk appetite alone indicates an unacceptable exposure level but does not necessarily mean the enterprise cannot absorb the risk.Show comments0Show commentsCommunity DiscussionNo comments yet. Be the first to start the discussion!
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