The best way to enable a risk practitioner to understand management’s approach to organizational risk is to know the risk appetite and risk tolerance of the organization. Risk appetite is the amount and type of risk that an organization is willing to pursue, retain, or take in order to achieve its objectives. Risk tolerance is the amount and type of risk that an organization is willing to accept in relation to specific performance measures, such as availability, reliability, or security. Risk appetite and risk tolerance reflect the management’s attitude, preferences, and expectations towards risk, and guide the risk management process, such as risk identification, assessment, response, and monitoring. The other options are not as effective as knowing the risk appetite and risk tolerance, although they may provide some input or context for understanding the management’s approach to organizational risk. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.1, page 1-8.