Risk scenarios are hypothetical situations that describe potential events or actions that could affect the achievement of enterprise objectives. The design of relevant risk scenarios should consider the following factors: the risk appetite and tolerance of the enterprise, the key risk indicators and risk drivers, the potential impact and likelihood of the scenarios, and the alignment with the risk management capabilities of the enterprise. The scenarios should be realistic, plausible, and consistent with the enterprise’s context and objectives. The scenarios should also be reviewed and updated periodically to reflect changes in the internal and external environment. The alignment with the risk management capabilities is the most critical factor, as it ensures that the scenarios are relevant for the decision making and risk response processes of the enterprise. References = Risk and Information Systems Control Study Manual, 7th Edition, Chapter 2, Section 2.3.3.2, pp. 67-69.