What type of controls provide guidelines that align with management's expectations for risk appetite?

Administrative controls are designed to establish guidelines and policies that align with an organization's management expectations regarding risk appetite. These controls often encompass the strategies and protocols that govern the behavior of employees and the overall corporate culture, ensuring that actions taken within the organization meet the managerial objectives related to risk.

Administrative controls typically include policies, procedures, and training programs that inform employees about the expected standards of conduct and decision-making processes. By defining the framework within which individuals operate, these controls directly reflect the organization’s desire to manage risk in a way that aligns with its overall goals and risk tolerance.

Technical controls, on the other hand, focus on systems and technology to safeguard data integrity and secure systems. Procedural controls are more about the operational methods and processes that guide day-to-day activities. Financial controls pertain specifically to managing income, expenditures, and financial reporting.

Each of the other types of controls plays an essential role in risk management, but it is the administrative controls that establish the guidelines as a reflection of management's risk appetite.