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Certificate of Cloud Auditing Knowledge (CCAK) · Isaca
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C. Risk appetite The risk appetite of an organization defines the level and type of risk it is willing to accept in pursuit of its objectives. Changes to an organization's risk appetite will most likely influence the expansion or reduction of controls required to remediate risk, including those arising from changes to a SaaS vendor. If the risk appetite increases, the organization may opt for fewer controls, accepting higher risk. Conversely, if the risk appetite decreases, more stringent controls may be implemented to mitigate risks more thoroughly.
C is the correct answer. If the change/s introduces additional risk, - the risk appetite and tolerance can determine if the organization is willing to take or tolerate the introduced risk.