A company's risk appetite is not related to which of the following?

Size of the company

Competitors’ risk
aggressiveness
Complexity of the company
Management's risk tolerance
Incorrect. The size of a company is related to its risk appetite.
Correct. Risk appetites vary with each company or organization. A company's
risk appetite is related to its size, complexity, and management's risk
tolerance and has nothing to do with a competitor's risk aggressiveness. The
larger the size of a company, the greater its complexity; the higher
management's risk tolerance, the bigger the risk appetite, and vice versa.
Incorrect. The complexity of a company is related to its risk appetite.
Incorrect. Management's risk tolerance is related to its risk appetite.

Derisking does not mean:

Risk volatility.
Risk
securitization
Risk
diversification
Risk modification
Correct. Risk volatility increases risks due to unexpected variations in risk
outcomes. It is not a good method of derisking.
Incorrect. Risk securitization decreases risks and is a good method of
derisking.
Incorrect. Risk diversification decreases risks and is a good method of
derisking.
Incorrect. Risk modification decreases risks and is a good method of
derisking.
Which of the following is not an upside risk?
 Marketing
surveys
Economic
analysis
Sales
prospecting
Test marketing
Incorrect. Marketing surveys are upside risks.
Correct. Upside risks are opportunities to benefit, and downside risks are
threats to success. Economic analysis shows both good news and bad news
at a point in time, meaning both upside and downside risks (i.e., hybrid risks).
Incorrect. Sales prospecting is an upside risk.
Incorrect. Test marketing is an upside risk.