CCR Credit Practice Questions - AICB Certificate In Credit Exam

Risk appetite is the maximum level of risk a bank can physically survive, while limits are set by BNM. Risk appetite is a high-level qualitative and quantitative statement of the risk the bank is willing to accept, while limits are specific operational thresholds. Risk appetite refers only to retail lending, while limits apply exclusively to corporate portfolios. Risk appetite is set retrospectively based on losses, while limits are set proactively for sales targets.