Bishop 2.3 - Risk Appetite

Question 1

What is risk appetite?

Answer 1

“the
amount and type of risk that an organization is prepared to pursue,
retain or take.”

Question 2

Risk Appetite V Risk Tolerance?

Answer 2

An example of a risk appetite statement would be when a company says
it does not accept risks that could result in a significant loss of its
revenue base. When the same company says it does not wish to accept
risks that would cause revenue from its top 10 customers to decline by
more than 10%, it is expressing a risk tolerance definition

Question 2

Risk Appetite V Risk Tolerance?

Answer 2

An example of a risk appetite statement would be when a company says
it does not accept risks that could result in a significant loss of its
revenue base. When the same company says it does not wish to accept
risks that would cause revenue from its top 10 customers to decline by
more than 10%, it is expressing a risk tolerance definition