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Which of the following statements best describes the difference between risk appetite and risk tolerance?
Which of the following statements best describes the difference between risk appetite and risk tolerance?
A . Risk appetite applies to specific objectives, while risk tolerance refers to an organization’s general attitude toward risk,
B. Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance is one approach to risk management.
C. Risk appetite refers to an organization’s general level of acceptance, while risk tolerance is a more specific and subordinate concept.
D. There is no significant difference between the two terms.
Answer: C
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