​Which of the Following Statements Is True of the Risk

question 4

Multiple Choice

​Which of the following statements is true of the risk appetite determination step within the enterprise risk management (ERM) process of an organization?

• A) ​Determining an organization's risk appetite involves identifying the top risks and assessing risks at the inherent level.
• B) ​Determining an organization's risk appetite involves determining the organization's desired overall level of risk taking.
• C) ​Determining an organization's risk appetite is the final step in the iterative enterprise risk management process.
• D) ​Determining an organization's risk appetite requires input from a cross-functional team to capture all the threats-or risks-to the organization.

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Definitions:

Credit Collections

The process of pursuing payments of debts owed by individuals or businesses, typically undertaken by a department or agency.

Required Return

The minimum return an investor expects to achieve on an investment to consider it worthwhile.

Float Period

The time between when an individual writes and submits a check and when the check is cleared from the account.

Credit Sale

A transaction in which the buyer is allowed to take possession of goods or services before payment is made, typically under agreed terms of payment.