Page 166 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 13

Risk Appetite

Risk Appetite can be defined as the amount of risk an organisation is willing to accept
in pursuit of value. This may be explicit in strategies, policies and procedures, or it
may be implicit. It is determined by:

 Risk capacity.

 Risk attitude.

Illustrations and further practice

Now try example 1 ‘Risk’ from Chapter 13.

160