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Which of the following best explains the importance of determining organization risk appetite when operating with a constrained budget?
Correct Answer: A
Risk appetite is the amount of risk an organization is willing to accept to achieve its objectives. When operating with a constrained budget, understanding the organization's risk appetite is crucial because: * It helps prioritize security investments based on the level of risk the organization is willing to tolerate. * High-impact, low-likelihood events may be deemed acceptable if they fall within the organization's risk appetite, allowing for budget allocation to other critical areas. * Properly understanding and defining risk appetite ensures that limited resources are used effectively to manage risks that align with the organization's strategic goals. References: * CompTIA Security+ Study Guide * NIST Risk Management Framework (RMF) guidelines * ISO 31000, "Risk Management - Guidelines"
