Exam CRISC topic 1 question 1709 discussion

risk tolerance = The level of risk taking acceptable to achieve a specific objective or manage a category of risk - therefore, if there are greater penalties for data disclosure, then this is most likely to cause senior management to lower the tolerance level.

D. Decrease in budget allocated for risk mitigation activities. A decrease in the budget allocated for risk mitigation activities could lead senior management to lower the risk tolerance level. With fewer resources available for addressing and mitigating risks, senior management may opt to reduce risk tolerance to avoid the potential financial and operational impacts associated with higher-risk activities. This decision could involve scaling back on certain projects, initiatives, or business activities that carry higher inherent risks.