1. Select the single best answer.
The level of variation an enterprise is willing to accept in attaining objectives is
a. risk appetite.
b. risk tolerance.
c. risk assessment.
d. None of the above

2. Select the single best answer.
The amount of risk an enterprise is willing to accept pursuing value is
a. risk appetite.
b. risk tolerance.
c. risk assessment.
d. None of the above

3. Select the single best answer. When an enterprise evaluates the extent to which events would impact its ability to achieve objectives, it is conducting
a. risk appetite.
b. risk tolerance.
c. risk assessment.
d. None of the above

4. Select the single best answer. Adding impact and likelihood columns to a spreadsheet to evaluate risk associated with its use is an example of
a. risk appetite.
b. risk tolerance.
c. risk assessment.
d. None of the above

5. Select the single best answer. A policy of reconciling a bank statement to within $5 of balancing is an example of
a. risk appetite.
b. risk tolerance.
c. risk assessment.
d. None of the above