Question: Discuss the difference between risk appetite and risk tolerance citing two sources other than your textbook. Based on your response, answer the following questions: If
Discuss the difference between risk appetite and risk tolerance citing two sources other than your textbook.
Based on your response, answer the following questions:
- If a manufacturing organizations risk appetite related to financial strength is to maintain an annual profit margin of 30%, could the organization have a risk tolerance of an annual profit margin of 20% for a specific customer sector (e.g., government), assuming the organization does business in multiple sectors?
- Why or why not?
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