General Studies · Risk Governance
In the framework of corporate governance for banking institutions, which of the following best describes the Board of Directors' primary responsibility regarding the bank's Risk Appetite Statement (RAS)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Focusing exclusively on credit risk while ignoring operational, liquidity, and reputational risks within the RAS framework.
- 2Ensuring that the risk appetite is revised only once every decade to maintain absolute consistency in banking operations.
- 3Setting and overseeing the implementation of a clear RAS that defines the aggregate level and types of risk the bank is willing to assume to achieve its strategic objectives.✓
- 4Delegating the final approval of all risk limits entirely to the internal audit team to ensure independence from the business.
Correct answer
Setting and overseeing the implementation of a clear RAS that defines the aggregate level and types of risk the bank is willing to assume to achieve its strategic objectives.
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