Which of the following is the BEST method for determining an enterprise's current appetite for risk?
Click on the arrows to vote for the correct answer
A. B. C. D.D.
The BEST method for determining an enterprise's current appetite for risk is to interview senior management.
Explanation: An enterprise's risk appetite refers to the level of risk that the enterprise is willing to accept or tolerate to achieve its objectives. It is important to determine an enterprise's risk appetite to ensure that risk management strategies and controls are aligned with the enterprise's objectives and culture.
Assessing social media adoption, evaluating the balanced scorecard, and reviewing recent audit findings can provide insights into an enterprise's risk environment, but these methods alone cannot determine an enterprise's risk appetite.
Interviewing senior management is the most effective method for determining an enterprise's risk appetite because senior management is responsible for defining the enterprise's objectives, strategy, and culture. By interviewing senior management, it is possible to gain an understanding of the enterprise's risk appetite and how it aligns with the enterprise's objectives and strategy. Senior management can also provide insights into the enterprise's risk culture and the level of risk that the enterprise is willing to accept to achieve its objectives.
Therefore, option D, interviewing senior management, is the BEST method for determining an enterprise's current appetite for risk.