The correct option is It ensures the baseline is realistic and aligned with business and operational objectives.

Involving key stakeholders helps ensure the baseline reflects real business needs and operational constraints and it makes the controls achievable in day to day operations.

Stakeholder engagement also promotes buy in and a shared understanding of priorities which increases the chance that required security and privacy measures are actually implemented and maintained.

Cloud IAM is incorrect because it names a specific technology or service rather than explaining why stakeholder involvement is important and it does not address alignment with business or operational objectives.

It limits discussion to technical issues only is incorrect because involving stakeholders broadens the discussion to include policy compliance privacy risks and business impact rather than narrowing it to technical concerns.

It removes the need to conduct formal risk assessments is incorrect because stakeholder input complements formal risk assessments and it does not replace a systematic evaluation of threats vulnerabilities and impacts.

Full AWS Practitioner Certification Question