The level of risk in the IT risk profile is the aggregate measure of the likelihood and impact of IT-
related risks that may affect the enterprise’s objectives and operations.
The risk appetite is the amount and type of risk that the enterprise is willing to accept in pursuit of its
goals. It is usually expressed as a range or a threshold, and it is aligned with the enterprise’s strategy
and culture.
If the level of risk in the IT risk profile has decreased and is now below management’s risk appetite, it
means that the enterprise has more capacity and opportunity to take on additional risks that may
offer higher rewards or benefits.
The best recommendation in this situation is to optimize the control environment, which is the set of
policies, procedures, standards, and practices that provide the foundation for managing IT risks and
controls. Optimizing the control environment means enhancing the efficiency and effectiveness of
the controls, reducing the costs and complexity of compliance, and aligning the controls with the
enterprise’s objectives and values.
Optimizing the control environment can help the enterprise to achieve the optimal balance between
risk and return, and to leverage its risk management capabilities to create and protect value.
The other options are not the best recommendations, because they do not address the opportunity
to improve the enterprise’s performance and resilience.
Realigning risk appetite to the current risk level may result in missing out on potential gains or
advantages that could be obtained by taking more risks within the acceptable range.
Decreasing the number of related risk scenarios may reduce the scope and depth of risk analysis and
reporting, and impair the enterprise’s ability to identify and respond to emerging or changing risks.
Reducing the risk management budget may compromise the quality and reliability of the risk
management process and activities, and weaken the enterprise’s risk culture and
governance. Reference =
ISACA, CRISC Review Manual, 7th Edition, 2022, pp. 29-30, 34-35, 38-39, 44-45
ISACA, CRISC Review Questions, Answers & Explanations Database, 2022, QID 145
