ISC2 Certified in Cybersecurity (CC) Practice Question
During risk management planning, a security officer discusses establishing the organization's risk tolerance level. In this context, what does risk tolerance (also called risk appetite) best represent?
The likelihood that a threat will exploit a known vulnerability.
The maximum financial loss expected from a single adverse event.
The level of residual risk remaining after all controls are implemented.
The amount of risk an organization is willing to accept in pursuit of its objectives.
Risk tolerance-also known as risk appetite-describes how much risk an organization is willing to accept in pursuit of its objectives. It sets the upper boundary for acceptable exposure before additional mitigation, transfer, or avoidance actions become necessary. It is not a measure of the likelihood of a threat, the worst-case financial loss from a single incident, or the residual risk that remains after controls are in place; those concepts relate to probability, impact, and residual risk assessments, respectively.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
Why is risk tolerance important in risk management?
Open an interactive chat with Bash
How is risk tolerance different from residual risk?
Open an interactive chat with Bash
What factors influence an organization's risk tolerance?
Open an interactive chat with Bash
ISC2 Certified in Cybersecurity (CC)
Security Principles
Your Score:
Report Issue
Bash, the Crucial Exams Chat Bot
AI Bot
Loading...
Loading...
Loading...
Pass with Confidence.
IT & Cybersecurity Package
You have hit the limits of our free tier, become a Premium Member today for unlimited access.
Military, Healthcare worker, Gov. employee or Teacher? See if you qualify for a Community Discount.
Monthly
$19.99
$19.99/mo
Billed monthly, Cancel any time.
3 Month Pass
$44.99
$14.99/mo
One time purchase of $44.99, Does not auto-renew.
MOST POPULAR
Annual Pass
$119.99
$9.99/mo
One time purchase of $119.99, Does not auto-renew.
BEST DEAL
Lifetime Pass
$189.99
One time purchase, Good for life.
What You Get
All IT & Cybersecurity Package plans include the following perks and exams .