Choose the best definition of risk appetite from the list below.
A) Risk appetite is the amount of risk a company is willing to take on at that time.
B) Risk appetite uses different colors to represent values of data in a map or diagram format.
C) Risk appetite is the estimation of damage that could be caused if the risk occurs.
D) Risk appetite is an estimation of the loss of goodwill.

Question

Quizplus · Accepted Answer

Risk appetite refers to the level of risk that an organization is willing to accept in pursuit of its objectives before action is deemed necessary to reduce the risk. It is a reflection of the company's attitude towards risk-taking, influenced by the company's strategy, objectives, and external environment.

Choose the Best Definition of Risk Appetite from the List