Operational riskGovernance

Risk appetite

In French : Appétence au risque

The level and nature of risk the organisation is willing to take to achieve its objectives. To be usable it is expressed in thresholds, not adjectives.

Source : ISO 31000:2018 / COSO ERM 2017

Related terms

Key risk indicator

A metric that signals a change in exposure to a risk, ideally before a loss materialises.

Residual risk

The risk remaining after treatment. It must be explicitly accepted by a body with the authority to do so.