Elements of Risk Register that Change with Risk Appetite

D.

The risk register is a tool used to identify and document risks that may affect an organization's objectives. It is a living document that requires constant updates to reflect changes in the organization's environment and risk appetite. The risk appetite is the level of risk an organization is willing to accept to achieve its objectives.

Among the four options provided, the MOST likely element of a risk register to change as a result of a change in management's risk appetite is the key risk indicator (KRI) thresholds, which is option D.

Key risk indicators (KRIs) are measurements used to evaluate the likelihood and impact of a particular risk. KRIs are selected based on their relevance to the organization's objectives, and their thresholds are set to indicate when a particular risk has exceeded an acceptable level.

A change in management's risk appetite will result in a change in the organization's overall risk tolerance level, which may result in the need to adjust KRI thresholds. For example, if the organization's risk appetite decreases, KRI thresholds may need to be adjusted to reflect this change, and vice versa.

While risk likelihood and impact, risk velocity, and inherent risk are all important elements of the risk register, they are less likely to change as a result of a change in management's risk appetite. These factors are more dependent on external factors such as market conditions, changes in regulations, or changes in the organization's operating environment, rather than on changes in risk appetite.