is incorrect. CFO is the most senior official 0f the enterprise who is accountable for financial planning, record keeping, investor relations and financial risks. CFO is not responsible for responsible for setting up the risk governance process, establishing and maintaining a common risk view, making risk-aware business decisions, and setting the enterprise's risk culture. Answer: C is incorrect. Human resource is the most senior official of an enterprise who is accountable for planning and policies with respect to all human resources in that enterprise. HR is not responsible for risk related activities.

Senior management participation is essential for the success of an organization's risk management framework, as it demonstrates the commitment, support, and leadership for the risk management activities.
Senior management participation also ensures that the risk management framework is aligned with the organization's strategy, objectives, and culture, and that the risk management roles and responsibilities are clearly defined and communicated. Senior management participation also facilitates the allocation of adequate resources, the establishment of risk appetite and tolerance, and the monitoring and reporting of risk performance. Therefore, the lack of senior management participation should be of greatest concern to a risk practitioner, as it indicates a low level of risk maturity and a high level of risk exposure. The other options are not as concerning as the lack of senior management participation, because they do not affect the risk management framework as significantly, and they can be addressed or improved with the involvement of senior management, as explained below:
* A. Unclear organizational risk appetite is a deficiency that can affect the risk management framework, as it can lead to inconsistent or inappropriate risk decisions and responses. However, this deficiency can be resolved or mitigated with the participation of senior management, who can define and communicate the risk appetite and tolerance for the organization, and ensure that they are aligned with the organization's strategy and objectives.
* C. Use of highly customized control frameworks is a deficiency that can affect the risk management framework, as it can create complexity, confusion, or duplication in the control design and implementation. However, this deficiency can be resolved or mitigated with the participation of senior management, who can review and rationalize the control frameworks, and ensure that they are relevant, effective, and efficient for the organization's risk profile and environment.
* D. Reliance on qualitative analysis methods is a deficiency that can affect the risk management framework, as it can limit the accuracy, reliability, and comparability of the risk information and assessment. However, this deficiency can be resolved or mitigated with the participation of senior management, who can support and promote the use of quantitative analysis methods, such as the FAIR framework1, and provide the necessary data, tools, and skills for the risk analysis and evaluation.
References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.3.2, page 18.

Risk limits, thresholds, and indicators provide the most useful information to determine risk exposure following control implementations, as they help to measure and monitor the current and residual risk levels and compare them with the desired and acceptable risk levels. Risk limits, thresholds, and indicators are defined as follows:
* Risk limits are the maximum amount of risk that an organization is willing to accept for a given activity, process, or objective. Risk limits are derived from the organizational risk appetite and tolerance, and they help to guide the risk response and control selection.
* Risk thresholds are the points or levels at which the risk or performance is acceptable or unacceptable.
Risk thresholds are used to trigger alerts, actions, or escalation when the risk or performance deviates from the expected or planned range.
* Risk indicators are metrics or measures that provide information on the current or potential risk exposure or performance. Risk indicators can be classified into key risk indicators (KRIs), which measure the likelihood and impact of risk events, and key performance indicators (KPIs), which measure the effectiveness and efficiency of controls and processes.
Risk limits, thresholds, and indicators help to determine risk exposure following control implementations by providing quantitative and qualitative data and feedback on the risk and control environment. They also help to identify and prioritize the areas for improvement and enhancement of the risk and control environment.
Risk limits, thresholds, and indicators also facilitate the communication, collaboration, and accountability among the stakeholders involved in the risk management and control processes.
The other options are not the most useful information to determine risk exposure following control implementations. Strategic plan and risk management integration is the process of aligning the organizational strategy and objectives with the risk management framework and activities, but it does not provide specific information on the risk exposure or control effectiveness. Risk escalation and process for communication is the process of reporting and escalating the risk issues and incidents to the appropriate authority and stakeholders, but it does not provide comprehensive information on the risk exposure or control performance.
Policies, standards, and procedures are the documents that define the principles, rules, and guidelines for the risk management and control processes, but they do not provide actual information on the risk exposure or control implementation. References = Risk Limits, Thresholds and Indicators - ISACA, IT Risk Resources | ISACA, Risk Management: Risk Indicators and Risk Appetite

Explanation/Reference:
Explanation:
The prioritization of the risk responses and development of the risk response plan is influenced by several parameters:
Cost of the response to reduce risk within tolerance levels

Importance of the risk

Capability to implement the response

Effectiveness of the response

Efficiency of the response

Incorrect Answers:
B: Time required to mitigate risk does not influence the prioritization of the risk and development of the risk response plan. It affects the scheduled time of the project.