The amount of risk a company is willing to accept in order to achieve its goals and objectives is
A)inherent risk.
B)residual risk.
C)risk appetite.
D)risk assessment.

Question

Quizplus · Accepted Answer

Risk appetite refers to the level of risk that a company is willing and able to tolerate in order to achieve its objectives. In contrast, inherent risk refers to the level of risk present in a specific activity or process, while residual risk is the level of risk that remains after risk mitigation efforts have been implemented. Risk assessment is a process of evaluating potential risks and their impact on business operations. Therefore, the correct answer is C, risk appetite.

The Amount of Risk a Company Is Willing to Accept