Exam CGEIT topic 1 question 57 discussion

A. Emerging risk trends can significantly impact an organization’s current risk exposure. By reporting on these trends, the board of directors can gain a better understanding of the evolving risk landscape and make informed decisions about risk management.

A. The effect of emerging risk trends on current risk exposure

Answer is B because helps the board understand the context and significance of the presented KRIs. It provides a framework for interpreting the indicators in relation to the organization's overall risk management strategy and objectives.

When reporting key risk indicators to the board of directors, the MOST important information to include is B. Risk appetite, risk threshold, and risk tolerance. Here's why: Risk appetite, risk threshold, and risk tolerance: The board of directors is responsible for overseeing the organization's risk management strategy and making informed decisions regarding risk tolerances. Including information on risk appetite (the level of risk the organization is willing to accept), risk threshold (the point at which risk becomes unacceptable), and risk tolerance (the acceptable range of variation within risk limits) helps the board understand the organization's risk management framework. This information provides context for interpreting the key risk indicators and assessing whether they align with the organization's risk objectives and desired risk exposure.