Which of the following is MOST important for senior management to review during an acquisition?
A.
Risk appetite and tolerance
B.
Risk framework and methodology
C.
Key risk indicator (KRI) thresholds
D.
Risk communication plan
The Answer Is:
A
This question includes an explanation.
Explanation:
The most important factor for senior management to review during an acquisition is the risk appetite and tolerance of the target organization. The risk appetite and tolerance reflect the amount and type of risk that an organization is willing to accept in pursuit of its objectives. By reviewing the risk appetite and tolerance of the target organization, senior management can determine if they are compatible with their own, and if the acquisition will create any significant risk exposure or opportunity for the acquiring organization. Risk framework and methodology, key risk indicator (KRI) thresholds, and risk communication plan are other factors that may be reviewed, but they are not as important as the risk appetite and tolerance. References = ISACA Certified in Risk and Information Systems Control (CRISC) Certification Exam Question and Answers, question 8; CRISC Review Manual, 6th Edition, page 97.
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