Which of the following should be the PRIMARY area of focus when reporting changes to an organization’s risk profile to executive management?
Which of the following should be the PRIMARY area of focus when reporting changes to an organization’s risk profile to executive management?
The primary area of focus when reporting changes to an organization’s risk profile to executive management should be risk tolerance. Executive management needs to determine if the organization's current risk exposure aligns with its risk appetite and tolerance levels. This helps in assessing whether the risks are within acceptable limits or if corrective measures need to be implemented.
C. Risk trends
A. Risk tolerance When reporting changes to an organization's risk profile to executive management, the primary area of focus should be on the organization's risk tolerance. Executive management needs to understand whether the current risk exposure aligns with the organization's risk appetite and tolerance levels. By focusing on risk tolerance, management can assess whether the changes in the risk profile are within acceptable limits or if further action needs to be taken to bring them back in line with the organization's risk tolerance.