Business A-Level
risk appetite
What risk appetite means in Business A-Level, as defined for AQA.
Definitions of risk appetite
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Reference: AQA
How much risk the owners will carry, which is part of the set of circumstances that decides whether a choice is right.
The tolerance for risk, or the risk the owners are willing to carry, against which the worth of an option is judged.
Topics that use risk appetite
- Strategic direction: choosing which markets to compete in and what products to offer (AQA A-Level)
- Subject content (AQA A-Level)
Related terms
- Ansoff matrix
- capacity utilisation
- corporate and functional objectives
- corporate objectives
- cost now against benefit later
- data quality
- decision context
- diversification
Using risk appetite in the exam
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