The purpose of a risk appetite statement is to:

Question

Options

• Aclearly define the level of risk exposure to financial crime which a financial institution is willing to
• Bhelp investors understand the risk a financial institution is willing to take.
• Chelp customers understand which financial institutions may be willing to bank their business.
• Deliminate high-risk business types from a financial institution.

• A
  74% (29)
• B
  10% (4)
• C
  13% (5)
• D
  3% (1)

Explanation

A risk appetite statement clearly defines the level and type of financial crime risk a financial institution is willing to accept in pursuit of its objectives. It guides decision-making and ensures consistency in risk-taking across the organization.

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