Chapter 5 deals with how an organisation sets its risk objectives. However, I can't find any specific mention or examples of risk objectives in the notes. I understand what objectives are just not in the sense of risk objectives. Can anyone give me an example? Would the example risk appetite statements be risk objectives?
Hi Don't be too worried by the terminology. The syllabus objective 2.2 states "Describe how to determine a company's risk appetite, risk capacity and risk objectives". This means how does a company think about risk with regard to its business objectives (bearing in mind different stakeholders will have different objectives) - eg the risk/return trade-off which is mentioned in the chapter on risk optimisation. Risk appetite, risk tolerance, risk capacity, risk profile and risk limits (which are all discussed in Chapter 5) can all be viewed as tools to help a company meet its (risk-based) business objectives. I hope this helps
