CFA Practice Question

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CFA Practice Question

An organization is investigating what shortfalls within the organization would cause it to fail to achieve some critical goals. This step is usually done at the ______ stage.

A. risk tolerance
B. risk budgeting
C. risk measurement
Correct Answer: A

Risk tolerance is taking an inside view to define dimensions and levels of potential risks. It is NOT about selecting a portfolio of acceptable risk activities.

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