Open communication of risk reporting is the most important factor for promoting a risk-aware culture, because it fosters trust, transparency, and accountability among all stakeholders. It also enables timely and informed decision-making, feedback, and learning from risk events. Regular testing of risk controls, communication of audit findings, and procedures for security monitoring are all important aspects of risk management, but they do not necessarily create a risk-aware culture, which requires a shared understanding and commitment to risk management across the organization. References = Risk and Information Systems Control Study Manual, Chapter 1, Section 1.2.2, page 1-9.

Executive management should be primarily responsible for establishing an organization's IT risk culture, as they have the authority and accountability to define and communicate the vision, mission, values, and objectives of the organization, and to set the tone and direction for the IT risk management and control processes. Executive management is the highest level of management in an organization, and it consists of the board of directors, the chief executive officer (CEO), and other senior executives. Executive management is responsible for the strategic planning and decision making of the organization, and for ensuring the alignment of the organizational strategy and objectives with the stakeholder expectations and requirements.
Executive management should be primarily responsible for establishing an organization's IT risk culture by providing the following benefits:
* It demonstrates the leadership and commitment of the executive management to the IT risk management and control processes, and to the achievement of the organizational strategy and objectives.
* It influences and motivates the behavior and attitude of the staff and managers towards IT risk management and control, and fosters a culture of risk awareness, ownership, and accountability across the organization.
* It defines and communicates the IT risk appetite and tolerance of the organization, and guides and supports the development and implementation of the IT risk policies, standards, and procedures.
* It allocates and monitors the resources and performance of the IT risk management and control processes, and ensures the effectiveness and efficiency of the IT risk governance and oversight.
The other options are not the primary choices for establishing an organization's IT risk culture. Business process owner is the person who has the responsibility and authority over the design, execution, and performance of a specific business process, and they are accountable for the risks and controls associated with their process, but they do not have the overall or strategic responsibility for the IT risk culture. Risk management is the function or department that is responsible for managing and monitoring the IT risk management and control processes, and for providing advice and guidance to the executive management and the business units, but they do not have the ultimate or final responsibility for the IT risk culture. IT management is the function or department that is responsible for managing and maintaining the IT operations and security, and for supporting the IT risk management and control processes, but they do not have the highest or broadest responsibility for the IT risk culture. References = Risk Culture - Open Risk Manual, IT Risk Resources | ISACA, The 6 key elements to creating and maintaining a good risk culture

The most critical aspect of a key risk indicator (KRI) is its ability to predict future risk events with a high probability. KRIs are designed to provide early warning signals so that proactive measures can be taken to mitigate risks before they materialize. While measuring the volume of risk events (Option A) and providing metric data for reporting (Option D) are useful, they are reactive rather than predictive. Qualitative measures (Option C) may support reporting but lack the predictive power of a well-designed KRI.
References:
* ISACA CRISC Review Manual, Domain 4: Risk and Control Monitoring and Reporting - Explains the role of KRIs in predicting and monitoring risks.
* ISACA CRISC Job Practice, Task 4.1: Monitor risk and controls to ensure they remain effective over time.

Organizational objectives should be the primary input to determine risk tolerance, as they define the desired outcomes and performance of the organization, and guide the selection of the acceptable level of risk that the organization is willing to take to achieve those objectives. Regulatory requirements, annual loss expectancy (ALE), and risk management costs are not the primary inputs, as they are more related to the external or internal constraints or factors that affect the risk tolerance, rather than the drivers or determinants of the risk tolerance. References = CRISC Review Manual, 7th Edition, page 109.

The best indicator that additional or improved controls are needed in the environment is when risk events and losses exceed risk tolerance. Risk tolerance is the acceptable level of variation in performance or outcomes relative to the achievement of objectives. Risk events and losses are the negative consequences of risk that have occurred or are expected to occur. When risk events and losses exceed risk tolerance, it means that the existing controls are not sufficient or effective to prevent or mitigate the risk, and that the organization is exposed to unacceptable levels of risk that could impair its ability to achieve its objectives. Therefore, additional or improved controls are needed to reduce the risk to an acceptable level. Management decreasing organizational risk appetite, the risk register and portfolio not including all risk scenarios, and emerging risk scenarios being identified are not as clear and direct indicators that additional or improved controls are needed in the environment, as they do not necessarily reflect the actual performance or outcomes of the risk management process. References = CRISC Review Manual, 6th Edition, ISACA, 2015, page 41.