D. Risk that exceeds risk appetite.
Risks that exceed the organization's risk appetite are the most critical, as they surpass the level of risk the organization has determined it is willing to accept. Addressing these risks is essential to bring them within acceptable limits and to maintain the organization's overall risk exposure at a manageable level. While untreated risks, risks with high likelihood, and those with high inherent risk are also important, the primary focus should be on ensuring that all risks are within the organization's defined risk appetite, as this aligns risk management with the organization's strategic objectives and tolerance for risk.
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