Exam SY0-701 topic 1 question 515 discussion

Risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. Risk appetile is a kind of risk that a company can tolerate.

Answer: B. Appetite Risk appetite refers to the level of risk an organization is willing to accept to achieve its objectives. Before granting access to contractors and employees, the implementation team should understand the company's risk appetite to ensure the expansion of access controls aligns with the organization's tolerance for risk. Why the other options are not correct: A. Threshold A risk threshold is the specific level of risk that an organization is unwilling to exceed. While thresholds are important, they are more granular than risk appetite and are typically derived from it. Understanding risk appetite is more critical at this stage. C. Avoidance Risk avoidance involves eliminating risk by not engaging in the activity that creates it. This is not relevant to the scenario, as the company is considering expanding access, not avoiding it.