- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 6. Introduction to Risk Management
- Subject 2. Risk Governance
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.
B. risk budgeting
C. risk measurement
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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