A GROWING REGIONAL BANK HAS ADDED A RISK COMMITTEE TO ITS BOARD. O...
23.
A growing regional bank has added a risk committee to its board. One of the first recommendations of the
risk committee is that the bank should develop a risk appetite statement. What best represents a primary
function of a risk appetite statement?
a.
To quantify the level of variability for each risk metric that a firm is willing to accept
b.
To state specific new business opportunities that a firm is willing to pursue
c.
To assign risk management responsibilities to specific internal staff members
d.
To state a broad level of acceptable risk to guide the allocation of the firm’s resources