Risk appetite is typically determined by which of the following organizational functions?

 Role of the Board of Directors in Determining Risk Appetite:

The Board defines the organization's risk tolerance, balancing operational objectives with acceptable risk levels. This aligns with governance and fiduciary responsibilities.

 Key Considerations:

Establishes strategic priorities and risk limits for the organization.

Ensures that risk management aligns with stakeholder expectations and regulatory requirements.

 Why Not Other Options:

Security (A): Implements controls but does not set risk tolerance.

Business units (B): Manage operational risks but do not set overarching risk appetite.

Audit and compliance (D): Ensures adherence but does not define risk levels.

 EC-Council Framework:

Governance and risk management frameworks emphasize the Board's role in defining and communicating risk appetite to guide organizational decision-making.