PRINCE2 Foundation — Question 207

What is described as an organization's unique attitude towards risk taking

Answer options

• A. Risk appetite
• B. Risk management
• C. Risk evaluation
• D. Risk tolerance

Correct answer: A

Explanation

The correct answer, Risk appetite, refers to the amount and type of risk an organization is willing to pursue or retain. Risk management is a broader process that encompasses identifying, assessing, and controlling risks. Risk evaluation is part of the risk management process, focusing on the assessment of risks, while risk tolerance indicates the acceptable level of risk but does not define the organization's overall attitude towards risk.