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The board of directors of a regional bank is reviewing a proposal for a new line of business of offering financing for electric vehicles. The board is concerned that the bank's current risk appetite and risk limit structure may not fully capture potential decreases in the residual value of the vehicles over time, and reviews the bank's risk governance framework to evaluate its soundness. Which of the following is appropriate for the board to recommend after the evaluation of the risk governance framework?
A
The bank's risk appetite should be given final approval by senior management.
B
The CRO should have the authority to make timely decisions regarding risk limit exceptions for each business line.
C
The bank should set Tier 1 risk limits on aggregated risk exposures and Tier 2 risk limits on specific assets or risk types.
D
The bank should use delta-normal VaR to set risk limits for counterparty credit risks under stressed market conditions.