Certified in Risk and Information Systems Control (CRISC) Practice Test

Executive management is responsible for accepting risk as they typically have the authority to make strategic decisions that can significantly impact the organization. This level of management focuses on the overall direction and long-term goals of the organization, which includes evaluating potential risks and determining the level of risk the organization is willing to accept in pursuit of its objectives.

In the context of risk management, executive management assesses various risks associated with new initiatives or investments, weighing the potential rewards against the threats. They must balance the need for innovation and growth with sustainability and compliance. Their acceptance or rejection of risk often sets the tone for the organization's risk appetite, informing how risks should be managed at all levels of the organization.

Operational management and middle management typically handle day-to-day operations and implement policies. While they play critical roles in identifying and managing risks on a tactical level, they usually do not have the authority to accept risks at an organizational level. Senior management might also involve itself in risk decisions, but it is the executive management that ultimately holds accountability for these decisions, especially in larger organizations.