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Question 651 - CISM discussion

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Which of the following should have the MOST influence on an organization's response to a new industry regulation?

A.
The organization's control objectives
Answers
A.
The organization's control objectives
B.
The organization's risk management framework
Answers
B.
The organization's risk management framework
C.
The organization's risk appetite
Answers
C.
The organization's risk appetite
D.
The organization's risk control baselines
Answers
D.
The organization's risk control baselines
Suggested answer: C

Explanation:

The most influential factor on an organization's response to a new industry regulation isthe organization's risk appetite. This is because the risk appetite defines the level of risk that the organization is willing to accept in pursuit of its objectives, and it guides the decision-making process for managing risks. The risk appetite also determines the extent to which the organization needs to comply with the new regulation, and the resources and actions required to achieve compliance. The risk appetite should be aligned with the organization's strategy, culture, and values, and it should be communicated and monitored throughout the organization.

asked 01/10/2024
Cristian Lazo
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