Read the definitions below, and select the one that best describes what is meant by risk appetite.

Question $12$Select one:

a$.$

The responsibility to determine a risk strategy and policy for how the entity$/$department$/$organisation will manage risk.

b$.$

The types of risk and the degree of risk that an entity$/$department$/$organisation is willing to accept in pursuit of its goals.

c$.$

The willingness of a ministry to take on ambitious projects that will facilitate upward political mobility.

d$.$

The effect of uncertainty on objectives.