Risk appetite is an important component of strategic risk management (SRM). Which one of the following statements is correct with respect to an organization's risk appetite? An organization's risk appetite is typically independent of its capital and other assets, including its human resources Economic forces, market forces, and competition generally have little effect on an organizations" risk appetite. Regulatory conditions, political risks, and anti-trust or other legal concerns can reduce an organization's risk appetite. Because risk appetite is based on the attitudes of executives and shareholders, it is usually static and does not vary over time