The BEST way to demonstrate alignment of the risk profile with business objectives is through risk scenarios, because they are the descriptions and illustrations of the potential events or situations that may affect the achievement of the business objectives and processes. Risk scenarios can help to demonstrate how the risk profile, which is the summary and representation of the identified and assessed risks, is relatedand relevant to the business objectives and processes, and how the risk responses and controls are designed and implemented to support and enable the business objectives and processes. The other options are not the best way, because:

Option B: Risk tolerance is the level of variation or deviation from the expected or desired outcome that the organization is willing to accept or endure, but it does not demonstrate alignment of the risk profile with business objectives, which is the process of ensuring that the risk profile and the business objectives are consistent and compatible with each other.

Option C: Risk policy is the document that defines the principles, guidelines, and requirements for the risk management process and activities in the organization, but it does not demonstrate alignment of the risk profile with business objectives, which is the process of showing and proving that the risk profile and the business objectives are coherent and integrated with each other.

Option D: Risk appetite is the amount and type of risk that the organization is willing to take or pursue in order to achieve its objectives and goals, but it does not demonstrate alignment of the risk profile with business objectives, which is the process of establishing and maintaining that the risk profile and the business objectives are aligned and balanced with each other. References = Risk and Information Systems Control Study Manual, 7th Edition, ISACA, 2020, p. 104.