Who determines whether a risk is acceptable within an organization?

The Chief Executive Officer (CEO) plays a critical role in the organization's risk management framework by establishing the overall acceptable risk tolerance level. As the highest-ranking executive, the CEO is ultimately responsible for the organization's strategic direction, including decisions related to risk. This involves weighing the potential risks against the organization's goals and objectives, and determining what level of risk the organization is willing to accept in pursuit of its mission.

While the other roles listed may have significant responsibilities in assessing, analyzing, and communicating risk, the authority to define and endorse risk acceptance strategies typically resides with the CEO. Senior leadership must also ensure that the organizational culture supports effective risk management, which is closely aligned with the CEO's vision and priorities.

Data Owners are responsible for the classification and management of the data themselves, while the Risk Management Officer focuses on identifying and mitigating risks based on frameworks and policies. A Senior Security Analyst, on the other hand, would conduct security assessments and provide recommendations regarding potential vulnerabilities but does not have the final say on risk acceptance. Hence, while all these roles contribute to risk assessment and management, the ultimate determination of acceptable risk aligns with the responsibilities of the CEO.