The total exposure that an organization is willing to accept,given the risk and return trade-off for the portfolio of risk the organization faces,is the organization's
A)risk matrix.
B)risk tolerance.
C)risk map.
D)risk appetite.

Question

Quizplus · Accepted Answer

The term "risk appetite" refers to the maximum amount of risk that an organization is willing to take in pursuit of its objectives. It is determined by factors such as the organization's risk tolerance, the risk and return trade-off for the portfolio of risks faced by the organization, and the organization's overall strategic goals. Therefore, option D is the correct answer. Options A, B, and C are incorrect as they do not accurately describe the concept of risk appetite.

The Total Exposure That an Organization Is Willing to Accept,given