Which of the following terms is NOT typically used to describe risk appetite?

Risk appetite refers to the amount and type of risk that an organization is willing to pursue or retain in order to achieve its objectives. The terms that are commonly associated with risk appetite include attitude, preference, and tolerance.

Attitude reflects an organization’s overall approach to risk, either positive or negative, shaping how risks are viewed and managed. Preference indicates the specific choices or inclinations an organization has toward certain risks, based on its strategies and goals. Tolerance, on the other hand, is about the level of risk an organization can absorb without jeopardizing its business continuity or financial stability.

The term "claim" does not relate to risk appetite; instead, it pertains to the demands made by an insured party to an insurer under the terms of an insurance policy. Claims are a response to risk materializing, rather than a measure or expression of the organization's willingness to engage with risk. This distinction helps clarify why "claim" is not used to describe risk appetite.