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A recently established company is currently undergoing significant operational changes, as it expects an influx of equity capital to fuel its expansion initiatives. The risk manager of the firm is evaluating the risk profile and the changing capital structure. It has been noted that, once the funding is received, the company plans to shift its focus towards higher-risk ventures. What is the most likely conclusion that the risk manager can derive after the capital is obtained and the new, riskier projects are set in motion?
A
The company's risk capacity will decrease and its risk appetite will increase.
B
The company's risk capacity will increase and its risk appetite will decrease.
C
Both the company's risk capacity and risk appetite will remain the same
D
Both the company's risk capacity and risk appetite will increase.