Certified Anti-Money Laundering Specialist (CAMS7 the 7th edition) Questions and Answers
Question 93
What is the primary purpose of a risk appetite statement (RAS) in an organization and how should it be effectively communicated and implemented?
Options:
A.
An RAS defines the amount and type of risk an organization is willing to take to achieve its objectives and should be communicated clearly to all stakeholders with corresponding controls implemented
B.
An RAS is a detailed plan for managing operational risks and does not cover strategic or financial risks
C.
An RAS is a formal document meant for regulatory compliance that does not influence day-to-day risk management practices within the organization
D.
An RAS is used to outline the risk tolerance limits to external stakeholders and does not need to be communicated within the organization
Answer:
A
Explanation:
A risk appetite statement defines the amount and type of risk an organization is willing to accept in pursuit of its objectives. It must be clearly communicated to all stakeholders and supported by corresponding controls and processes to ensure it is embedded in day-to-day decision-making and risk management.
