Expansionary Risk Appetite
Expansionary risk appetite
is a type of risk appetite where an organization is willing to take on more
risk in order to potentially earn higher returns. Organizations with an
expansionary risk appetite are often in industries with high growth potential,
such as tech startups and investment banking.
Risk appetite is the amount of risk an organization is willing to take to achieve its objectives. It's a key factor in an organization's strategic decision-making and risk management philosophy. The board of directors sets the risk appetite, which should align with the organization's strategic objectives.
Risk appetite can vary depending on an organization's sector, culture, and objectives. For example, an organization that depends on government contracts may not be willing to take risks that could jeopardize its revenue base.
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