Which among the following acts as a trigger for risk response process?
Which among the following acts as a trigger for risk response process?
The risk response process is triggered when the risk level increases above the risk tolerance. Risk tolerance represents the maximum level of risk that an organization can withstand. Once the risk level surpasses this threshold, it necessitates immediate action to mitigate or manage the risk. Risk appetite, on the other hand, is the amount of risk an organization is willing to accept, which is a broader context and not a direct trigger for initiating the risk response process.
Disagree with the stated answer. Correct answer is A, when risk level goes past risk appetite. Risk tolerance is the level at which a company fails if a risk crystallises.