Certified Information Security Manager CISM · Free Practice Question Easy
Question 81
What does "Risk Capacity" refer to in the context of an organization's risk management?
- A A) The minimum risk an organization seeks to take in its operations.
- B B) The maximum risk an organization can afford to take.
- C C) The amount of risk an organization is willing to take to achieve its objectives.
- D D) The level of risk considered acceptable without further mitigation.
Reveal correct answer
Correct answer: B
Explanation
Explanation: A) Incorrect because risk capacity is about the maximum level of risk an organization can sustain, not the minimum it seeks. B) Correct because risk capacity defines the upper limit of risk an organization can manage without jeopardizing its survival or financial stability. C) Incorrect because this definition applies to risk appetite, which is about the amount of risk an organization is willing to accept in pursuit of its objectives. D) Incorrect because this describes a component of risk tolerance, which deals with acceptable deviations within the risk appetite, not the maximum risk capacity.Discussion
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