Explanation:
A. Correct because the risk tolerance of an organization should reflect both an "inside" view and an "outside" view.
The inside view asks what level of loss will leave the organization unable to meet critical objectives. The outside
view asks what sources of uncertainty or risk the organization faces.
B. Incorrect because both an "inside" and "outside" view must be reflected.
C. Incorrect because both an "inside" and "outside" view must be reflected.
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Two risk managers are discussing how an organization's risk tolerance should be determined. The first manager says, "The risk tolerance must reflect the losses or shortfalls that will cause the organization to fail to meet critical objectives." The second manager responds, "The risk tolerance must reflect the external forces that bring uncertainty to the organization." Which of them is most likely correct?
A
Both risk managers
B
The first risk manager
C
The second risk manager