Answer: II only

## Explanation **Correct Answer: B (II only)** ### Analysis: **I. Develop the organization's risk appetite statement** - This is NOT typically a Board function. The Board's role is to: - Review and approve the risk appetite statement - Provide oversight and guidance - Ensure alignment with strategic objectives The actual development of the risk appetite statement is typically done by: - Senior management - Risk management function - Risk committees **II. Determine if the risk appetite may cause risks in other areas of the organization** - This IS a reasonable Board function. The Board should: - Consider interdependencies between risks - Assess how risk appetite in one area might create risks elsewhere - Ensure comprehensive risk oversight across the organization ### Key Points: - **Board's Role**: Strategic oversight, approval, and monitoring - **Management's Role**: Development, implementation, and execution - **Risk Interdependencies**: The Board must consider how risk decisions in one area affect the entire organization Therefore, only task II is reasonably performed by the Board of Directors.

Author: LeetQuiz .