Acams Exam Advanced-CAMS-Audit Topic 3 Question 8 Discussion

Actual exam question for Acams's Advanced-CAMS-Audit exam

Question #: 8
Topic #: 3

Which statements demonstrate an effective use of risk appetite in an organization? (Select Two.)

ARisk appetite statements should remain stable and consistent, even in changing business conditions.

BDetermining risk appetite should include a discussion about an organization becoming overly risk-averse.

CRisk appetite statements do not need specific indicators to alert management when the level of acceptable risk is exceeded.

DWhen discussing and managing risk, 'risk appetite' and 'risk tolerance' can be used interchangeably.

EAnalyzing risk appetite statements is important to reaching a meaningful articulation of risk appetite.

Show Suggested Answer

Suggested Answer: B, E

by Julio at Feb 07, 2025, 09:32 PM

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Sabine

4 months ago

I disagree with both of you. I believe option B is crucial for a balanced approach to risk management.

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Lourdes

4 months ago

This exam question is a real gamble. I'm just hoping my answers don't leave me in the red zone!

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Alyce

4 months ago

I agree with you, Novella. Option E also seems important for understanding risk appetite.

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Salena

4 months ago

I'm going with B and E. Discussing becoming too risk-averse is important, and analyzing the statements is key to defining risk appetite.

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Novella

4 months ago

I think option A is a good choice because stability is important in risk management.

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Lili

4 months ago

D is a trick question. Risk appetite and risk tolerance have distinct meanings, you can't use them interchangeably.

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Alva

3 months ago

I agree, D is definitely a trick question. Risk appetite and risk tolerance are not the same.

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Marylin

3 months ago

E) Analyzing risk appetite statements is important to reaching a meaningful articulation of risk appetite.

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Raylene

3 months ago

B) Determining risk appetite should include a discussion about an organization becoming overly risk-averse.

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Clare

4 months ago

A) Risk appetite statements should remain stable and consistent, even in changing business conditions.

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Marla

4 months ago

C is definitely wrong. Risk appetite statements need clear indicators to monitor risk levels. Gotta have those guard rails!

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Fidelia

4 months ago

I think B and E are the correct answers. Risk appetite should be reviewed regularly and adjusted as needed, not kept static.

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Phillip

3 months ago

I agree, analyzing risk appetite statements is crucial for understanding acceptable risk levels.

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German

3 months ago

I'm not sure about C, I think specific indicators are needed to alert management.

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Alfreda

3 months ago

I think A is also important, risk appetite should remain stable and consistent.

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Keva

4 months ago

I agree, it's important for risk appetite to be regularly reviewed and adjusted.

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