The best way to help an enterprise define and communicate its risk appetite is to use a risk register, which is a document that records and summarizes the key information and data about the identified risks and the risk responses1. A risk register can help to:
Define the risk appetite, which is the amount and type of risk that the enterprise is willing to accept or pursue in order to achieve its objectives2. The risk register can include the risk appetite statement, which is a clear and concise expression of the enterprise’s risk preferences and boundaries3.
Communicate the risk appetite, which is the process of sharing and informing the risk appetite to the relevant stakeholders, such as the board, the management, the employees, or the customers4. The risk register can be used as a communication tool, which can provide a consistent and transparent view of the enterprise’s risk profile and performance5.
The other options are not the best ways to help an enterprise define and communicate its risk appetite, because:
Gap analysis is a technique that compares the current state and the desired state of a process, system, or organization, and identifies the gaps or differences between them6. Gap analysis can help to assess the alignment or misalignment of the enterprise’s risk appetite with its risk level, but it does not help to define or communicate the risk appetite itself.
Risk assessment is a process that estimates the probability and impact of the risks, and prioritizes the risks based on their significance and urgency. Risk assessment can help to identify andanalyze the risks that may affect the enterprise’s objectives, but it does not help to define or communicate the risk appetite itself.
Heat map is a graphical representation that uses colors to indicate the level or intensity of a variable, such as risk. Heat map can help to visualize and compare the risks based on their probability and impact, but it does not help to define or communicate the risk appetite itself.
References =
Risk Register - CIO Wiki
Risk Appetite - CIO Wiki
Risk Appetite Statement - CIO Wiki
Risk Communication - CIO Wiki
Risk Reporting - CIO Wiki
Gap Analysis - CIO Wiki
[Risk Assessment - CIO Wiki]
[Heat Map - CIO Wiki]
[Risk and Information Systems Control documents and learning resources by ISACA]
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