Acams Exam Advanced-CAMS-Audit Topic 3 Question 8 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam

Question #: 8
Topic #: 3

Which statements demonstrate an effective use of risk appetite in an organization? (Select Two.)

ARisk appetite statements should remain stable and consistent, even in changing business conditions.

BDetermining risk appetite should include a discussion about an organization becoming overly risk-averse.

CRisk appetite statements do not need specific indicators to alert management when the level of acceptable risk is exceeded.

DWhen discussing and managing risk, 'risk appetite' and 'risk tolerance' can be used interchangeably.

EAnalyzing risk appetite statements is important to reaching a meaningful articulation of risk appetite.

Show Suggested Answer

Suggested Answer: B, E

by Julio at Feb 07, 2025, 09:32 PM

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14 days ago

D is a trick question. Risk appetite and risk tolerance have distinct meanings, you can't use them interchangeably.

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2 days ago

A) Risk appetite statements should remain stable and consistent, even in changing business conditions.

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19 days ago

C is definitely wrong. Risk appetite statements need clear indicators to monitor risk levels. Gotta have those guard rails!

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21 days ago

I think B and E are the correct answers. Risk appetite should be reviewed regularly and adjusted as needed, not kept static.

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