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ISACA Certified in Risk and Information Systems Control · Isaca
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Why not A? i see nobody consider the "updated element in risk register" . also i didn't remember in the manual book the KRI is a filed in risk register. If appetite increases, some risks may be reassessed as having lower impact or likelihood, and vice versa risk appetite indeed affect the KRI, but now there is another consideration which is the risk register.
For sure, KRI thresholds are set based on the organization tolerance level, any change in the risk appetite, we have to adjust the thresholds. Agree with CbtL, inherent risk changes when there is a new business opportunity
Agree it is D. Your inherent risk changes when you have a change of business activity. If you change risk appetite, your inherent risk does not get altered. (Also agree john_boogieman is usually correct)