When should a municipal risk committee treat versus accept a scored risk in IRM architecture terms?
Select an answer to reveal the explanation.
Short Explanation
Appetite and tolerance are the speed-limit signs. Below the line you might accept with eyes open; above it you treat. Without those thresholds, treat-versus-accept is just gut feel in a council meeting.
Full Explanation
Risk appetite and tolerance provide architectural decision thresholds that guide whether residual exposure may be accepted or must be treated. Blind rules such as never accept, always accept below a scale max, or treat only when audit engages ignore those governed gates and weaken consistent IRM decisioning.