Which of the following statements is FALSE? a. the Board may set a minimum desired level of risk in the Risk Appetite Statement. b. risk profile defines the maximum level of risk, above which an organisation will fail. c. Social Licence is lost when risk capacity is reached. d. risk appetite is the maximum level of risk tolerance.

An organisation's appetite for risk, as expressed by risk level ratings, is the same for all risks because of the way the risk criteria is designed. Select one: True False

Which of the following statements about the ‘What is Risk?’ section of the lecture material based on the diagram below are TRUE:A risk-averse individual would always prefer A to B because they both offer the same expected reward while B has a higher level of risk than A.A risk-averse individual would always prefer A to C because A has a significantly lower level of risk than C.Question 2AnswerNeither of the statements are true (both are false)Only statement 1 is trueOnly statement 2 is trueBoth statements are true (neither are false)

Which of the following statements about the ‘What is Risk?’ section of the lecture material are TRUE:There is risk whenever there is some uncertainty about outcomes.A situation in which the value of an asset can either remain the same or decreases over a period of time can be described as ‘Pure Risk’.Question 1AnswerNeither of the statements are true (both are false)Only statement 1 is trueOnly statement 2 is trueBoth statements are true (neither are false)

Risk tolerance is the ability of an individual to discern a certain amount of risk. Select one: True False

Which one of the following statements is TRUE. Strategic risk is: Select one: a. undesirable and an organisation should avoid the risk b. not referred to in AS ISO 31000 c. a less significant source of value destruction than operational risks d. the risk of choosing a bad strategy and the risk of badly executing the chosen strategy