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ISACA Certified in Risk and Information Systems Control · Isaca
Select one answer.
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Tthe BEST indication of an effective risk management program is option C - Residual risk is within the organizational risk appetite. If the residual risk is within the organizational risk appetite, it suggests that the organization has identified and assessed the risks, designed and implemented appropriate controls, and regularly monitored the risks to ensure that they are managed effectively.
C. Residual risk is within the organizational risk appetite. The best indication of an effective risk management program is when the residual risk (the risk that remains after applying controls) is within the organizational risk appetite. An effective risk management program ensures that the organization's risk-taking aligns with its risk tolerance and strategic objectives. Keeping the residual risk within the established risk appetite demonstrates that risks are being identified, assessed, and managed in a way that supports the organization's overall goals and tolerances.
Should be "C", this is the core objective of risk management. When the residual risk is within the risk appetite then you already should have done A,B & D