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Risk appetite.

More aggressive financial and operational strategies are those in which higher levels of risk may be acceptable, if they appropriately rewarded.

Examples include:

  • Being willing to lend to borrowers other than very strongest credits, for an acceptable additional yield.
  • Using relatively more debt, in the corporate capital structure.
  • Taking a more selective approach to hedging financial risks.

See also

Other links

Risk appetite and risk tolerance: Practical guidance,