Risk Appetite Statement

A formal expression of an organization's willingness to take specific types and amounts of risk to achieve its strategic objectives. The statement typically includes both qualitative descriptions and quantitative parameters that define acceptable risk levels across various risk categories and business activities. In RBPM, a well-crafted risk appetite statement serves as a powerful management tool, providing clear guidance for decision-making at all levels of the organization. It establishes the framework within which strategy can be executed in a risk-aware manner.