C is correct.
Risks are automatically generated when you make associations between risk frameworks or risk statements and entity types.
All risk frameworks or statements are associated to the entity type and a risk is created for every risk statement against every entity in the entity type.
https://docs.servicenow.com/en-US/bundle/vancouver-governance-risk-compliance/page/product/grc-risk/task/t_GenerateRiskFromFramework.html
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