An organization is in the process of reviewing its risk appetite statement and re-defining the risk tolerance threshold. Which of the following elements of the risk register is MOST likely to change as a result of this review?
An organization is in the process of reviewing its risk appetite statement and re-defining the risk tolerance threshold. Which of the following elements of the risk register is MOST likely to change as a result of this review?
When an organization reviews its risk appetite statement and re-defines its risk tolerance threshold, it typically reassesses how it will respond to different risks. The risk response element of the risk register is most likely to change, as the organization might decide to accept, mitigate, transfer, or avoid risks differently based on their new risk tolerance levels. The risk impact, likelihood, and ownership are inherent characteristics of the risks themselves and are less likely to change due to a redefinition of risk tolerance thresholds.
A. Risk impact. Risk impact refers to the potential consequences or severity of a risk event occurring. When an organization reviews its risk appetite statement and adjusts its risk tolerance threshold, it may reconsider the level of impact deemed acceptable or unacceptable for various risks. This reassessment could lead to changes in the classification or assessment of risk impacts within the risk register.
Risk response
reviewing its risk appetite statement and re-defining the risk tolerance threshold This will not change the risk impact or likelihood, nor the ownership.