Which of the following is a risk practitioner ' s BEST recommendation to senior management...

The correct answer isAbecause when thecost to mitigate a risk exceeds the financial impactif the risk occurs, the most appropriate recommendation is tomanage the risk within risk tolerance, which in practice means accept the risk if it is within acceptable thresholds. CRISC emphasizes cost-benefit analysis and avoiding controls whose cost is not justified by the benefit.

The other options are less appropriate:

B. Implement the risk mitigation planwould not be justified if mitigation costs more than the expected loss.

C. Reassess the risk frequentlymay be useful, but it is not the primary recommendation.

D. Increase the organization ' s risk appetiteis a governance decision and should not be adjusted merely to justify a single uneconomical mitigation.

Exact Extracts supporting the answer:

“When the cost to mitigate the risk is much greater than the benefit to be derived the best risk response is that the risk be accepted.”

“The cost of mitigating a risk should not exceed the expected benefit to be derived.”

“The BEST reason for an enterprise to decide not to reduce an identified risk is that the cost of mitigation exceeds the risk.”

“A global financial institution deciding not to take further action on a denial-of-service vulnerability found by the risk assessment team is most likely because the cost of countermeasure outweighs the value of the asset and potential loss.”

These extracts directly support accepting or managing the risk within tolerance rather than implementing unjustified mitigation.

===========