Exam CISM topic 1 question 167 discussion

The evaluation of risks includes the comparison of risks to the organizations risk appetite. A is correct.

C. Comparison to risk appetite The most important consideration when prioritizing risk remediation should be the comparison to the organization's risk appetite. An organization's risk appetite is the amount of risk it is willing to accept in pursuit of its objectives. Prioritizing remediation efforts based on how identified risks align with the organization's risk appetite ensures that resources are focused on mitigating risks that surpass the acceptable level of risk the organization has established. While the evaluation of risk (A), duration of exposure (B), and impact of compliance (D) are all important factors to consider, they should all be considered within the context of the organization's risk appetite.

Evaluate the risk to determine the business impact and risk level, which help to prioritize the controls.

C prioritize remediation of any risk depend on the organizational appetited of risk

C..I think the primary word is "Prioritize" which means to determine the order of things..Comparison to risk appetite will clearly determine the order of importance doing a full evaluation or doing a full assessent is to broad i think for this question although two of them is equally important but the context of the question i would go with C

A is correct

Could be C because it says "when prioritizing risk remediation", meaning that the risks were already evaluated, now we need to compare against Risk appetite?

C. Comparison to risk appetite All the factors listed are important in risk prioritization, the comparison to the organization's risk appetite should be the guiding principle. It ensures that risk mitigation efforts are in line with the organization's strategic objectives and tolerance for risk, helping prioritize remediation efforts effectively.

Answer is C. Need to limit mitigation efforts in order to stay in line with the risk appetite.

C. Comparison to risk appetite All the factors listed are important in risk prioritization, the comparison to the organization's risk appetite should be the guiding principle. It ensures that risk mitigation efforts are in line with the organization's strategic objectives and tolerance for risk, helping prioritize remediation efforts effectively.

here they are talkin about risk remediation so A is wrong answer

Going with A. Risk appetite does not facilitate prioritisation, risk assessment does. Risk appetite would tell you that risk response is adequate and not how they should be prioritised. This has a similar question in CRISC QAE.

You need to evaluate the risk in relation to the organization's risk appetite, therefore C.

Evaluation of Risk

A. Evaluation of risk

Comparison to risk appetite refers to assessing the identified risks in relation to the organization's tolerance for risk. Risk appetite defines the level of risk that an organization is willing to accept in pursuit of its objectives. It takes into account factors such as strategic goals, operational requirements, legal and regulatory obligations, and the organization's overall risk culture. When prioritizing risk remediation efforts, it is crucial to align them with the organization's risk appetite. By comparing identified risks to the risk appetite, organizations can determine the level of priority for remediation. This ensures that resources are allocated effectively and that risks are addressed in a manner consistent with the organization's risk tolerance and strategic objectives. While the other options may also have relevance in the risk prioritization process, they are not as fundamental as aligning with risk appetite:

While all the options listed are important considerations when prioritizing risk remediation, the impact of compliance (Option D) should be the most important consideration. Compliance with legal, regulatory, and contractual obligations is critical for any organization, and failure to comply can result in significant legal, financial, and reputational consequences.