- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 6. Introduction to Risk Management
- Subject 1. The Risk Management Process
CFA Practice Question
What is one of the responsibilities of the board in the risk management framework?
B. Allocating capital to risky activities
C. Risk budgeting
A. Planning value-maximizing strategies
B. Allocating capital to risky activities
C. Risk budgeting
Correct Answer: C
Risk budgeting is guidance on how or where risks are taken, or any means of allocating investments or assets by their risk characteristics.
User Contributed Comments 0
You need to log in first to add your comment.