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Basic Question 4 of 6

An organization is investigating what shortfalls within the organization would cause it to fail to achieve some critical goals. This step is usually done at the ______ stage.

A. risk tolerance
B. risk budgeting
C. risk measurement

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Craig Baugh

Craig Baugh

Learning Outcome Statements

define risk governance and describe elements of effective risk governance

explain how risk tolerance affects risk management

describe risk budgeting and its role in risk governance

CFA® 2025 Level I Curriculum, Volume 6, Module 6.