Agree it is B. Risk appetite before cost benefit analysis. Management needs to understand if action needs to be taken before deciding if the cost makes sense.
Senior management's primary focus should be placed on the alignment with risk appetite when reviewing a risk response strategy because risk appetite defines the organization's overall willingness to accept risk in pursuit of its objectives. Ensuring that the risk response strategy aligns with the risk appetite helps senior management make informed decisions that balance potential opportunities and risks, while maintaining the desired level of risk exposure.
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