What is a key responsibility of senior management concerning risk?

Establishing acceptable risk levels is indeed a key responsibility of senior management in the context of risk management. Senior management is tasked with defining the organization's risk appetite, which outlines the amount and type of risk that the company is willing to take in pursuit of its objectives. This involves assessing the potential threats and vulnerabilities that may affect the organization, along with the impacts these could have on its operations, reputation, and overall strategy.

By establishing acceptable risk levels, senior management provides guidance for decision-making across the organization. This helps ensure that risk management activities align with the organization's goals and that resources are appropriately allocated to mitigate risks within the defined tolerance levels. Clear communication of these acceptable levels also helps create a risk-aware culture within the organization, enabling employees to make informed decisions that align with overall risk management strategies.

While developing the information security policy, reviewing IT performance assessments, and implementing IT governance frameworks are important tasks within the broader context of risk management and information security, they typically fall under the purview of IT management or specific governance teams. These activities support the overall risk management strategy but do not encapsulate the foundational responsibility of senior management in establishing the organization's risk appetite and acceptable risk levels.