Which of the following statements best describes the difference between risk appetite and risk tolerance?

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marco antonio villanueva · Accepted Answer

Risk appetite refers to an organization's general level of acceptance, while risk tolerance is a more specific and subordinate concept.

marco antonio villanueva · Answer

Risk appetite applies to specific objectives, while risk tolerance refers to an organization's general attitude toward risk,

marco antonio villanueva · Answer

Risk appetite refers to the degree of risk acceptance for a particular objective, while risk tolerance is one approach to risk management.

marco antonio villanueva · Answer

There is no significant difference between the two terms.

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