- 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
Risk management includes ______.
II. understanding and quantifying risk exposure
III. minimizing risk exposure
I. defining the level of risk to be taken
II. understanding and quantifying risk exposure
III. minimizing risk exposure
Correct Answer: I and II
Risk is not just a matter of fact. It is something that organizations can actively control with their decisions. It should be defined and measured. Risk management also includes adjusting risk exposure to the risk level that an institute can bear.
User Contributed Comments 1
| User | Comment |
|---|---|
| UcheSam | Adjusting risk to the risk level an institute can bear is just another nomenclature to minimizing risk exposure. Although, I got the answer since that is what is needed. |