What is the primary purpose of a risk appetite statement (RAS) in an organization and how should it be effectively communicated and implemented?

The correct answer is A. An RAS defines the amount and type of risk an organization is willing to take to achieve its. A risk appetite statement defines the amount and type of risk an organization is willing to accept in pursuit of its objectives. It must be clearly communicated to all stakeholders and supported by corresponding controls and processes to ensure it is embedded in day-to-day…

AML/CFT Compliance Programs

Question

Options

AAn RAS defines the amount and type of risk an organization is willing to take to achieve its
BAn RAS is a detailed plan for managing operational risks and does not cover strategic or financial
CAn RAS is a formal document meant for regulatory compliance that does not influence day-to-day
DAn RAS is used to outline the risk tolerance limits to external stakeholders and does not need to

How the community answered

(55 responses)

A
73% (40)
B
4% (2)
C
16% (9)
D
7% (4)

Explanation

A risk appetite statement defines the amount and type of risk an organization is willing to accept in pursuit of its objectives. It must be clearly communicated to all stakeholders and supported by corresponding controls and processes to ensure it is embedded in day-to-day decision-making and risk management.

Topics

#risk appetite statement#risk governance#organizational risk tolerance#senior management

Community Discussion

No community discussion yet for this question.

Full CAMS Practice