QuestionQ1050

Risk Assessment

Which two MAJOR factors should be considered when determining the risk appetite level? Each correct answer represents part of the solution.

Choose two
  • A The amount of loss the enterprise wants to accept
  • B Alignment with risk-culture
  • C Risk-aware decisions
  • D The capacity of the enterprise's objective to absorb loss.
Explanation

Risk appetite reflects the amount of loss the enterprise is willing to accept and must remain within its capacity to absorb loss. These factors distinguish willingness to take risk from the maximum loss the enterprise can sustain.

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