The correct answer is It ensures the assessment focuses on the organization's business objectives and acceptable threat level.

Factoring the credit union's risk appetite and regulatory security expectations directs the team to concentrate on what matters most to the institution and to its regulators. When the scope aligns with the assessment focuses on the organization's business objectives and acceptable threat level the team can prioritize high impact systems, tailor control testing depth, and ensure compliance obligations are assessed appropriately.

It identifies which cloud assets such as Cloud Storage and Compute Engine must be in scope is incorrect because identifying specific assets is an outcome of an asset inventory and architectural review. Risk appetite and regulatory expectations help prioritize assets but do not by themselves enumerate specific cloud services to include.

It helps set the amount of funding allocated to cybersecurity efforts is incorrect because budgeting is a business governance decision driven by many factors. Risk appetite can influence funding priorities but scoping an assessment is primarily about focus and risk prioritization rather than setting budgets.

It determines how frequently employees must complete security awareness training is incorrect because training frequency is an operational policy or control decision. Regulatory expectations may affect training requirements but scoping the assessment is about which systems and risks to evaluate rather than specifying exact training schedules.

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