Management has decided to invest significant capital in a new and innovative large computer system. They understand that they are one of the first organizations to implement this system, but they believe the benefits outweigh the uncertainty over the performance and reliability of the software. This decision best describes which aspect of risk management?

Question

Quizplus · Accepted Answer

Risk appetite refers to the level of risk an organization is willing to accept in pursuit of its objectives. In this scenario, management's decision to invest in a new system despite uncertainties indicates their willingness to accept a certain level of risk, reflecting their risk appetite.

Management Has Decided to Invest Significant Capital in a New