is incorrect. Risk avoidance means to evade risk altogether, eliminate the cause of the risk event, or change the project plan to protect the project objectives from the risk event. Risk avoidance is applied when the level of risk, even after the applying controls, would be greater than the risk tolerance level of the enterprise. Answer: D is incorrect. Risk acceptance means that no action is taken relative to a particular risk; loss is accepted if it occurs. Answer: C is incorrect. Risk mitigation attempts to reduce the probability of a risk event and its impacts to an acceptable level. Risk mitigation can utilize various forms of control carefully integrated together.

Implementing controls to bring the risk to a level within appetite and accept the residual risk is the best recommendation to senior management when the results of a risk and control assessment indicate a risk scenario can only be partially mitigated, as it helps to balance the costs and benefits of the risk management and control processes, and to align them with the organizational strategy and objectives. A risk and control assessment is a process of identifying, analyzing, and evaluating the risks and controls associated with a specific activity, process, or objective. A risk scenario is a description of a possible event or situation that could cause harm or loss to the organization or its stakeholders. A risk scenario can only be partially mitigated when the existing or proposed controls are not sufficient or effective to reduce the risk to an acceptable level.
A risk appetite is the amount and type of risk that an organization is willing to accept in pursuit of its objectives. A residual risk is the risk that remains after the implementation of controls or risk treatments.
Implementing controls to bring the risk to a level within appetite and accept the residual risk helps to provide the following benefits:
* It enables a data-driven and evidence-based approach to risk management and reporting, rather than relying on subjective or qualitative judgments.
* It facilitates a consistent and standardized way of measuring and communicating risk levels and exposure across the organization and to the external stakeholders.
* It supports the development and implementation of effective and efficient risk response and mitigation strategies and actions that are aligned with the business risk appetite and objectives.
* It provides feedback and learning opportunities for the risk management and control processes, and helps to foster a culture of continuous improvement and innovation.
The other options are not the best recommendations to senior management when the results of a risk and control assessment indicate a risk scenario can only be partially mitigated. Implementing a key performance indicator (KPI) to monitor the existing control performance is a useful method to measure and monitor the effectiveness and efficiency of the controls, but it does not address the residual risk or the risk appetite.
Accepting the residual risk in its entirety and obtaining executive management approval is a possible option to deal with the risk scenario, but it may expose the organization to excessive or unacceptable risk, and it may not comply with the legal or regulatory obligations or requirements. Separating the risk into multiple components and avoiding the risk components that cannot be mitigated is a possible option to deal with the risk scenario, but it may not be feasible or practical, and it may create new or additional risks or challenges.
References = Risk and Control Self-Assessment (RCSA) - Management Study Guide, IT Risk Resources | ISACA, Risk Mitigation: What It Is and How to Implement It (Free Templates ...

A, and B are incorrect. These all are used to deal with opportunities or positive risks,
and not with negative risks.

According to the Risk Management Essentials, a risk profile is established to enhance senior management's analysis and decision making related to priority setting and resource allocation. A risk profile is a description of a set of risks that an organization faces, and it helps to make the risks visible and understandable. By having a documented risk profile, an organization can identify the nature and level of the threats, assess the likelihood and impact of the risks, evaluate the effectiveness of the controls, and determine the risk appetite and tolerance. This information can help the organization to make well-informed decisions on how to manage the risks and achieve its objectives. References = Risk Management Essentials, Risk Profile: Definition, Importance for Individuals & Companies