Role of the Board of Directors in Determining Risk Appetite:
The Board defines the organization's risk tolerance, balancing operational objectives with acceptable risk levels. This aligns with governance and fiduciary responsibilities.
Key Considerations:
Establishes strategic priorities and risk limits for the organization.
Ensures that risk management aligns with stakeholder expectations and regulatory requirements.
Why Not Other Options:
Security (A): Implements controls but does not set risk tolerance.
Business units (B): Manage operational risks but do not set overarching risk appetite.
Audit and compliance (D): Ensures adherence but does not define risk levels.
EC-Council Framework:
Governance and risk management frameworks emphasize the Board's role in defining and communicating risk appetite to guide organizational decision-making.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit