An organization has raised the risk appetite for technology risk.
The MOST likely result would be:
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A. B. C. D.B.
If an organization raises its risk appetite for technology risk, it is indicating that it is willing to accept higher levels of risk associated with technology-related activities. In other words, the organization is willing to tolerate more risk in pursuit of potential rewards or benefits.
The MOST likely result in this scenario would be C. higher risk management cost. This is because as the organization accepts higher levels of risk, it will need to invest more resources in managing that risk. This may include implementing additional controls, performing more frequent risk assessments, and hiring more staff with specialized risk management skills. All of these activities are likely to increase the organization's overall risk management cost.
Option A, lower risk management cost, is unlikely to be the result of raising risk appetite since higher risk appetite would require more resources to manage the additional risk.
Option B, decreased residual risk, is also unlikely. Residual risk refers to the amount of risk that remains after controls have been implemented. If an organization raises its risk appetite, it is likely to accept higher levels of risk even after controls have been put in place, meaning that residual risk will not decrease.
Option D, increased inherent risk, is also unlikely to be the result of raising risk appetite. Inherent risk refers to the amount of risk that exists before controls are implemented. Raising the risk appetite may result in the organization accepting higher levels of inherent risk, but it does not necessarily increase the inherent risk itself.