Under-Exposed Zone

The area of the Appetite Alignment Matrix where risk appetite exceeds risk exposure. Organizations operating in this zone are taking less risk than they have deemed acceptable, potentially missing valuable opportunities for growth, innovation, or efficiency. The under-exposed zone signals potential for increased risk-taking within appetite boundaries, which might involve exploring new markets, introducing innovative products, or relaxing excessive controls. Addressing under-exposure offers opportunities for enhanced value creation while remaining consistent with risk governance requirements.