Risk-Taking

The deliberate acceptance of uncertainty in pursuit of strategic objectives. Risk-taking is an inherent part of business activity and value creation - without some level of risk-taking, organizations cannot innovate, grow, or generate returns. In RBPM, the focus is on appropriate risk-taking within defined appetite boundaries rather than risk minimization. The Appetite Alignment Matrix highlights where organizations may be taking too much risk (over-exposed) or not enough risk (under-exposed) relative to their strategic ambitions.