Use the words and phrases in the table provided below to complete the following paragraphs:

An organisation is likely to have a portfolio of projects, some incurring more risk than others, so that the overall risk ______________ is met from that portfolio.
A ______________ appetite will indicate that the organisation will normally seek a higher number of higher-risk/return activities as the organisation is willing to accept ______________ capacity has not been reached. However, a ______________ risk and its risk indicates that a higher number of low-risk/lower-return activities will be preferred.
The way that an organisation manages risk will also affect its risk strategy. Using ______________ as an example of risk management, the overall risk strategy of an organisation can be explained as follows:

- A strategy of primarily self-insurance may limit the organisation's strategy regarding undertaking ______________ implies risk minimisation as an overall strategy.

- A risk strategy of ______________ risk projects. Self-insurance that incorporates a higher level of risk. However, risk will then be limited by the amount of insurance premiums. Where premiums become too high, the risk strategy determines that, overall, the organisation will seek less risky projects.

- A strategy of ______________ implies that the organisation wants to limit the total amount of risk.

- Finally, a strategy of risk ______________ may imply that the risk capacity of the firm is being reached and while additional risk can be accepted, the amount of risk that can be taken on is limited.

Risk capacity is also important when determining the desired method of expansion within an organisation. Where the organisation has a high risk capacity the overall risk strategy is likely to be directed to taking on higher risk projects. However, where the organisation's total risk capacity is being reached, then projects with a lower amount of risk will be expected.

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high risk avoidance transference reduction risky low risk TARA more appetite