Risk Acceptance

The video tutorial discusses the concept of risk appetite, which is the level of risk an organization is willing to accept. It explains how organizations must define their own risk scales, either quantitatively or qualitatively, and consider various criteria such as business, regulatory, operational, technological, financial, and social factors. The criteria for risk acceptance can be expressed as the relationship between expected earnings and estimated risks. Additionally, the tutorial covers how risk acceptance criteria may include future requirements, such as implementing corrective actions to reduce risk to an acceptable level within a defined timeframe.

What is the term used to describe the level of risk an organization is willing to accept?

• Risk Assessment

• Risk Appetite

• Risk Tolerance

• Risk Management

Which of the following is NOT a factor considered in risk acceptance criteria?

• Technological

• Financial

• Cultural

• Operational

How can the criteria for acceptance of risk be expressed?

• As a detailed risk management plan

• As a summary of past incidents

• As a relation between expected earnings and estimated risks

• As a list of potential risks

What might risk acceptance criteria include regarding future requirements?

• A strategy for risk avoidance

• A plan for immediate risk elimination

• A list of risks to ignore

• A treatment plan for additional future requirements

When can a risk be accepted according to the example provided?

• When a corrective action plan is approved

• When it is fully mitigated

• When it is transferred to another party

• When it is ignored