[编考按]【FRM每日一题】二级：操作风险测量与管理？The RAF represents the firm’s core risk strategy. The RAF does not necessarily need to be amended every time there is a profitable opportunity; doing...
Which of the following statements regarding the risk appetite framework (RAF) is correct?
A.The RAF represents the firm’s core risk strategy.
B.The RAF should be amended to take advantage of all profitable opportunities.
C.The RAF focuses on which risks the firm is willing to take and under what conditions.
D.The RAF begins with the risk appetite statement that contains many elements, including examining the composition of the income statement.
The RAF represents the firm’s core risk strategy. The RAF does not necessarily need to be amended every time there is a profitable opportunity; doing so would cause the RAF to loss its value. The RAF also focuses on which risks the firm is unwilling to take. The risk appetite statement would not likely include an examination of the composition of the income statement; it would more likely be the balance sheet (i.e., debt, equity.).