The different types of Risk Appetite Flashcards
1
Q
What is Expansionary Risk Appetite?
A
Organization is open to taking more risk for a better ROI
2
Q
What is a Conservative Risk Appetite?
A
Implies that an organization favors less risk even though it means lower returns
3
Q
What is Neutral Risk Appetite?
A
Signifies a balance between risk and return
4
Q
What is Risk Appetite?
A
An organizations willingness to take on risks to fulfill its strategic goals