The Chief Executive Officer (CEO), as the leader of senior management, is responsible for implementing the strategy set by the Board of Directors. A critical component of this is developing the institution's risk appetite statement for the Board's review and approval. The CEO ensures that the risk appetite is embedded into the daily operations and strategic planning of the organization, setting the tone from the top for risk management culture.

B. Designing the specifics of the AML/CTF program is typically delegated to the compliance function or MLRO, not the CEO directly.

C. While the CEO must stay informed, this is a general responsibility for all senior management, not a specific, high-level strategic duty defining the CEO's role in risk.

D. This is poorly phrased. The Board of Directors is ultimately responsible for ensuring independent risk management, while the CEO is responsible for its implementation.

1. ACAMS. (2023). Advanced CAMS-Risk Management (CAMS-RM) Study Guide. Chapter 2: Governance, Section: Roles and Responsibilities, Subsection: Senior Management, p. 36.

2. Financial Stability Board. (2013). Thematic Review on Risk Governance. Peer Review Report, Section 3.2: Role of the board and senior management, p. 11.