CAMS Exam Dumps | What is thepurpose of a Risk Appetite Statement (RAS)and its linkages while implementingorganizational

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Question 61/346

What is the purpose of a Risk Appetite Statement (RAS) and its linkages while implementing organizational controls? (Select Two.)

A. An RAS formalizes a risk appetite statement from management and informs the Board of Directors on the risk assessment performed.

B. An RAS establishes a desired level of risk exposure in qualitative terms, covering all areas of compliance.

C. An RAS sets limits for risk-taking by means of quantitative and qualitative metrics so that the business does not take up risk in excess of the organization's risk tolerance.

D. An RAS establishes a management-approved policy that identifies the organization's risk tolerances with strategic objectives, risk profile, and risk management capabilities.

E. An RAS sets limits in terms of residual risk and thus is strongly intertwined with the efficacy of the system of internal controls.

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