BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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There is fixed amount on risk appetite.
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Risk appetites change due to changing market environment.
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Risk appetite reflects the attitude towards risk mitigation.
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A larger risk appetite indicates that a bank is taking smaller risks.
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Detailed explanation-1: -Risk appetite is the size of risk a company is willing to accept to achieve its objectives. A company with a high-risk appetite will tolerate a high level of risk and can be defined as a risk-tolerant company. It is likely to invest in high-risk, high-reward investment opportunities.
Detailed explanation-2: -Risk appetite is the amount of risk an organization is willing to take in pursuit of objectives it deems have value.
Detailed explanation-3: -Risk appetite is described as “the amount of risk that an organization is willing to accept to achieve its objectives.” Through this definition, risk appetite introduces a concept that, while risk can impact an enterprise’s success, so can risk aversion.
Detailed explanation-4: -Risk appetite-The amount of risk an entity is willing to accept or retain in order to achieve its objectives. It is a statement or series of statements that describes the entity’s attitude towards risk taking.