After assessing risk, the decision to treat the risk should be based PRIMARILY on:
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A. B. C. D.B.
The decision to treat a risk should primarily be based on whether the level of risk exceeds the organization's risk appetite. This means that the organization needs to have a clear understanding of its risk appetite, which is the amount of risk that it is willing to accept in pursuit of its objectives.
If the level of risk exceeds the organization's risk appetite, then it is necessary to take action to treat the risk. Risk treatment involves implementing controls or taking other measures to reduce the level of risk to an acceptable level.
The availability of financial resources is an important consideration in risk treatment, but it should not be the primary factor. Organizations should allocate resources based on the level of risk and the importance of the assets or processes being protected, not solely based on available financial resources.
Inherent risk is the level of risk that exists before any controls or other risk treatment measures are put in place. While inherent risk is an important consideration in assessing risk, it should not be the primary factor in the decision to treat risk. The focus should be on whether the level of risk exceeds the organization's risk appetite.
The criticality of the risk is also an important consideration, but it should not be the primary factor in the decision to treat risk. Criticality should be considered in the context of the organization's risk appetite and the potential impact of the risk on the achievement of its objectives.
In summary, the decision to treat risk should primarily be based on whether the level of risk exceeds the organization's risk appetite, with the availability of financial resources, inherent risk, and the criticality of the risk being secondary considerations.