As per the WGU Cybersecurity Architecture and Engineering (KFO1 / D488) coursework, risk appetite defines the amount and type of risk an organization is willing to accept in pursuit of its objectives. It is a strategic-level metric used by executive leadership and boards to determine if the current level of risk exceeds what the organization is comfortable handling.
Risk evaluation plans (B) outline how risks are assessed, treatment plans (C) describe mitigation actions, and risk tolerance (D) is more operational, defining acceptable variation from the appetite but not the overall strategic limit.
Reference Extract from Study Guide:
"Risk appetite represents the amount of risk an organization is willing to pursue or retain and is established by senior leadership as part of governance activities."
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