An IT governance committee is defining a risk management policy for a portfolio of IT-enabled investments.
Which of the following should be the PRIMARY consideration when developing the policy?
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A. B. C. D.B.
When defining a risk management policy for a portfolio of IT-enabled investments, the primary consideration should be the risk appetite of the enterprise. The risk appetite refers to the amount and type of risk that an organization is willing to accept to achieve its objectives. It is essential to establish the risk appetite as it provides a framework for managing risk and making informed decisions about risk-taking.
Option A: Risk appetite of the enterprise The risk appetite of an enterprise is the amount and type of risk that an organization is willing to accept to achieve its objectives. The risk appetite should be defined in collaboration with stakeholders, including executive management, the board of directors, and business owners. The risk appetite provides a framework for managing risk and making informed decisions about risk-taking.
Option B: Risk management framework A risk management framework provides a structured approach to managing risk. It outlines the process for identifying, assessing, and responding to risks. While a risk management framework is important, it should be developed in consideration of the risk appetite of the enterprise.
Option C: Value obtained with minimum risk The value obtained with minimum risk should be considered when making investment decisions. However, it is not the primary consideration when defining a risk management policy. The risk appetite of the enterprise should be established first to ensure that the organization's risk tolerance is aligned with its objectives.
Option D: Possible investment failures Possible investment failures are a concern, but they should not be the primary consideration when defining a risk management policy. The risk management policy should focus on managing risks in alignment with the organization's risk appetite and objectives.
In conclusion, when defining a risk management policy for a portfolio of IT-enabled investments, the primary consideration should be the risk appetite of the enterprise. This provides a framework for managing risk and making informed decisions about risk-taking.