CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Risk management includes ______.

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.
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