Why is the choice of a risk measure for internal and external risk of great practical importance?

Why is the choice of a risk measure for internal and external risk of great practical importance?

A. It determines the maximum number of clients that can be served effectively by a financial institution.

B. It determines the minimum reserve requirements in financial trading.

C. It identifies the types of risks that the financial institution will encounter.

D. It designates the audience that will receive the resulting financial reports.