Skip to content

CMA Final · Strategic Performance Management and Business Valuation · Corporate Risk Management Performance

In corporate risk management, which term describes the level of risk an organisation is prepared to accept in pursuit of its strategic objectives, as set by the board?

Risk appetite is the amount and type of risk that the board is willing to accept while pursuing strategic objectives. It guides decisions and limits. A risk register merely records risks, residual risk remains after controls, and transfer shifts risk elsewhere.

  1. ARisk appetiteCorrect
  2. BRisk register
  3. CResidual risk
  4. DRisk transfer

Explanation

Risk appetite is the amount and type of risk the board is willing to take to achieve objectives. A risk register is only a record of identified risks. Residual risk is what remains after controls, and risk transfer is a response such as insurance.

Did you get it right without looking?

One question tells you little. A timed set on Corporate Risk Management Performance shows your real accuracy, how long you take and where you lose marks.

Practise Corporate Risk Management PerformanceFree diagnostic mock

More Corporate Risk Management Performance questions