Risk Appetite

The amount and type of risk that an organization is willing to accept, and must take, to achieve its strategic objectives and create value for stakeholders. Risk appetite establishes boundaries for risk-taking activities and serves as a reference point for evaluating whether actual risk exposure is appropriate. In RBPM, risk appetite is the central concept that connects strategy and risk management. It should be clearly articulated by the board, communicated throughout the organization, and regularly reviewed as conditions change