When an organization raises its risk appetite for technology risk, the most likely result would be A. lower risk management cost. Risk appetite refers to the amount and type of risk that an organization is willing to take in order to meet its strategic objectives. An increase in risk appetite for technology risk means the organization is willing to accept a higher level of risk in this area. This usually leads to a reduction in the extent and cost of risk management activities, as fewer resources are allocated to mitigate risks that are now considered acceptable. In this context: B. Decreased residual risk would not be a direct result of increasing risk appetite; it would be more associated with increasing risk mitigation efforts. C. Higher risk management cost is unlikely because accepting higher risk generally means spending less on managing or mitigating that risk. D. Increased inherent risk is not a direct result of changing risk appetite. Inherent risk exists independently of the organization's attitude towards risk; it's the level of risk in the absence of any actions to alter its impact.

The correct answer is D. increased inherent risk. When an organization raises its risk appetite for technology risk, it means that it is willing to accept a higher level of risk. This means that more risks may be considered acceptable and left unmitigated, leading to an increase in the inherent risk level.

D. increased inherent risk When an organization raises the risk appetite for technology risk, the MOST likely result would be "D. increased inherent risk." Inherent risk refers to the level of risk that exists in the absence of any controls or risk mitigation efforts. By raising the risk appetite, the organization is essentially indicating its willingness to accept a higher level of risk. This means that more risks may be considered acceptable and left unmitigated, leading to an increase in the inherent risk level. While the other options (A. lower risk management cost, B. decreased residual risk, C. higher risk management cost) may have some relevance in certain scenarios, raising the risk appetite primarily influences the organization's willingness to tolerate higher levels of risk, impacting the inherent risk level accordingly.

By raising RA, the organization is willing to accept its risk (maybe due to its higher profit/budget) - the cost ratio of risk management will be decreased.

A. lower risk management cost When an organization raises its risk appetite, it means it's willing to accept a higher level of risk. As a result, it might decide to invest less in risk management activities, leading to lower risk management costs. This doesn't mean it's the best or the safest approach; it's merely a likely outcome of accepting a higher level of risk.

Raising the risk appetite means that the organization wishes to accept higher levels of risk and would invest more to manage this risk. As a result, the risk management cost will increase. Options A & B apparently incorrect. For option "D"; higher level of inherent risks will be accepted but the magnitude will not be changed

The most likely result of elevating the risk appetite for technology risk would be increased inherent risk. By increasing the risk appetite, the organization is willing to tolerate a higher level of risk, which could result in increased inherent risk if the organization takes on riskier technology initiatives or uses riskier technologies.

should be A

Definitely A. You are taking on more risk, therefore spending less as you don’t need as many/as strict of controls. Inherent risk can only be lowered if you basically avoid a risk, like a system no longer processes PII so it’s Inherent risk would now be lower.

Residual Risk can never be the answer when nothing has been applied. The answer is D. Inherent risk, because the more appetite that is accepted, the higher the inherent risk.

Risk treatment applicable when risk is not in acceptable risk appetite of an organization. Thus if Risk appetite increases, more untreated risk will be allowed, which implies more inherent risk will exist in the organization. will go with D

Answer is A When increasing the risk appetite for technology risk the result would be lower risk management costs. Inherent Risk with not increase as a result of the increase of the risk appetite.

Agree it should be D. You are increasing the level of risk you are willing to pursue hence increase in inherent risk

The correct answer is D - Increase in Inherent risk will lead to an increase in appetite

Should be A - lower risk management cost.

Should be A - lower risk management cost.

If higher risk appetite means they can absorb more risk. I would believe inherent risk is higher as i'm willing to take more risk. Thus I pick D