An organization has built up its cash reserves and has now become financially able to support additional risk while meeting its objectives. What is this change MOST likely to impact?

The risk profile describes the specific types and levels of risks an organization faces, which might change *due to* increased capacity but is not the direct impact of increased financial ability to support risk.

Risk capacity refers to the maximum level of risk that an organization can absorb without jeopardizing its financial viability or ability to meet its strategic objectives. An increase in cash reserves directly enhances an organization's financial strength, enabling it to financially withstand potential losses from higher risks, thus increasing its overall risk capacity.

Risk indicators are metrics used to monitor changes in risk levels; they reflect changes but are not the fundamental change itself when financial reserves increase.

Risk tolerance defines the acceptable deviation around the risk appetite; while related, risk capacity is a more fundamental measure of the absolute amount of risk the organization can *bear* given its resources.