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ISACA Certified in Risk and Information Systems Control · Isaca
Select one answer.
Written by other learners. Comments can disagree with the marked answer — check the official documentation when in doubt.
At Level 1, the organization is just starting to think about risk. It’s: Unstructured, Reactive, Lacking formal processes. So things like risk appetite and tolerance are not clearly defined or applied, even during episodic assessments.
At Level 1, risk appetite and tolerance are typically undefined or not applied at all. Their use even episodically which suggests a higher maturity level (e.g., Level 2 or 3).
I select C, however, chatGPT explained much better than my initial thought. "Risk appetite and tolerance are not only applied during episodic risk assessments; they are ongoing considerations in risk management. Organizations typically define their risk appetite and tolerance as part of their overall risk management framework, and these concepts guide decision-making and risk assessments continuously, not just during specific episodic assessments. They help in evaluating risks in various contexts, including strategic planning, project management, and operational activities."