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In the hallowed halls of modern corporations, from the gleaming skyscrapers to the shared office spaces above a coffee shop, a new mantra is being chanted: ‘What is our risk appetite?’
This is not a question about trying a new caterer for the annual meeting. It is a sophisticated, board-approved phrase that essentially asks, “How much are we willing to potentially lose to potentially win?”
The answer to this question creates a fascinating spectrum of decision-making across the business world .
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