What is the purpose of a Risk Appetite Statement (RAS) and its linkages while implementing organizational controls? (Select Two.)

The correct answer is C. An RAS sets limits for risk-taking by means of quantitative and qualitative metrics so that the D. An RAS establishes a management-approved policy that identifies the organization's risk. A Risk Appetite Statement (RAS) defines an institution's acceptable level of risk-taking and aligns AML and financial crime controls with organizational strategy. Option C (Correct): An RAS sets clear limits for acceptable risk-taking, balancing risk and business opportunities. O

AML/CFT Compliance Programs

Question

Options

AAn RAS formalizes a risk appetite statement from management and informs the Board of
BAn RAS establishes a desired level of risk exposure in qualitative terms, covering all areas of
CAn RAS sets limits for risk-taking by means of quantitative and qualitative metrics so that the
DAn RAS establishes a management-approved policy that identifies the organization's risk
EAn RAS sets limits in terms of residual risk and thus is strongly intertwined with the efficacy of the

How the community answered

(39 responses)

A
3% (1)
B
5% (2)
C
77% (30)
E
15% (6)

Explanation

A Risk Appetite Statement (RAS) defines an institution's acceptable level of risk-taking and aligns AML and financial crime controls with organizational strategy. Option C (Correct): An RAS sets clear limits for acceptable risk-taking, balancing risk and business opportunities. Option D (Correct): The RAS is a management-approved document that integrates risk tolerance, compliance strategy, and business goals.

Topics

#risk appetite statement#risk limits#organizational controls#compliance governance

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