Explanation:
Risk indicators are placed at control points within the enterprise and are used to collect data. These collected data are used to measure the risk levels at that point. They also track events or incidents that may indicate a potentially harmful situation.
Risk indicators can be in form of logs, alarms and reports. Risk indicators are selected depending on a number of parameters in the internal and external environment, such as:

• Size and complexity of the enterprise
• Type of market in which the enterprise operates
• Strategy focus of the enterprise

Incorrect Answers:
C: Risk appetite and risk tolerance are considered when applying various risk responses.