Risk appetite: Difference between revisions
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Broadly the amount of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking. | Broadly the amount of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.<br /> | ||
Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries. | |||
Risk appetite is sometimes also known as risk attitude, risk capacity or risk tolerance. | |||
== See also == | == See also == | ||
* [[Risk averse]] | * [[Risk averse]] | ||
* [[Risk management]] | |||
* [[Guide to risk management]] | * [[Guide to risk management]] | ||
* [[Risk policy]] | * [[Risk policy]] | ||
Revision as of 11:17, 30 May 2015
Broadly the amount of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.
Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.
Risk appetite is sometimes also known as risk attitude, risk capacity or risk tolerance.
See also
Other links
Risk appetite and risk tolerance: Practical guidance, www.theirm.org
