Exam CRISC topic 1 question 1031 discussion

D - Policies define the level of risk the organization is willing to accept, avoid, mitigate, or transfer

Risk assessment involves the systematic process of identifying, analyzing, and evaluating potential risks that an organization may face. This process often includes assessing the potential impact and likelihood of risks. Through a risk assessment, an organization gains a detailed understanding of the specific risks it faces, their potential consequences, and the organization's current control environment. This information is crucial in determining the organization's overall risk appetite and tolerance.

tolerance and appetite translate to policies

Agree with D. Theoretically the values are first documented in policy. The assessment lets you see these in action.

Reviewing the organization's Risk Policies provides the BEST indication of an organization's risk tolerance. Risk policies are a set of guidelines and procedures that define the organization's approach to managing risk. These policies help to establish the organization's risk tolerance, or the level of risk that the organization is willing to accept in pursuit of its objectives. By reviewing the organization's risk policies, one can gain a clear understanding of the organization's attitude towards risk and its risk appetite. While risk sharing strategies, risk assessments, and risk transfer agreements are all important components of an organization's risk management framework, they do not provide as clear an indication of the organization's risk tolerance as its risk policies. These other factors can be influenced by a range of internal and external factors and may not reflect the organization's true risk tolerance.

While D is also correct, in the risk assessment report, you can see that in action. In terms of the risk tolerance the org has chosen to accept in every single risk and risk scenario. I guess from that perspective B is correct as well. No?

Agree.

Sorry , I will go with D, the limit is pre-defined and policy and standard will provide an indicaitn of the same.

Risk Assessment...... That is where risk decisions are made depending on the level of risk the organization is willing to take.

Probably not, as the value or risk level cant be derived from policy but the from risk assessment. Looking at the acceptable risk value, can make an assumption about the risk tolerance level.

Wouldn’t this be in their risk policy framework?