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Answer: Both I and II
## Explanation Both statements I and II are reasonable tasks for a Board of Directors regarding risk appetite: **I. Develop the organization's risk appetite statement** - The Board of Directors is responsible for establishing and approving the organization's overall risk appetite statement, which defines the amount and types of risk the organization is willing to accept in pursuit of its strategic objectives. **II. Determine if the risk appetite may cause risks in other areas of the organization** - The Board should assess how the established risk appetite might create unintended consequences or risks in other parts of the organization, ensuring comprehensive risk oversight. Therefore, both tasks fall within the Board's governance responsibilities for risk management oversight.
Author: LeetQuiz Editorial Team
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Which of the following tasks regarding risk appetite would be reasonably performed by an organization's Board of Directors?
I. Develop the organization's risk appetite statement.
II. Determine if the risk appetite may cause risks in other areas of the organization.
A
I only
B
II only
C
Both I and II
D
Neither I nor II
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