Final answer:
The amount of risk a company is willing to accept in pursuit of its goals is known as risk appetite, which is distinct from risk tolerance, inherent risk, and residual risk.
Step-by-step explanation:
The amount of risk a company is willing to take on at a particular time is called risk appetite. Risk appetite refers to the total exposure a company or other entity is willing to accept in pursuit of its goals before action is deemed necessary to reduce the risk. It differs from risk tolerance, which is the level of risk the company is able to withstand, and inherent risk, which is the risk that exists in the absence of controls. Residual risk is the risk remaining after controls are in place.