Risk appetite - Revision history

imported>Doug Williamson: Add 3rd definition. Source: linked pages.

2020-06-09T12:53:57Z

Add 3rd definition. Source: linked pages.

← Older revision		Revision as of 12:53, 9 June 2020
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	''Risk management.''		''Risk management.''

	1.		1. ''Organisations.''

	Strictly, risk appetite means the amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.		Strictly, risk appetite means the amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.
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	The term 'risk appetite' is also sometimes used more loosely, interchangeably with risk ''attitude'', risk ''capacity'' or risk ''tolerance''.		The term 'risk appetite' is also sometimes used more loosely, interchangeably with risk ''attitude'', risk ''capacity'' or risk ''tolerance''.


			3. ''Other contexts''.

			Similar considerations in other contexts, for example, on the part of individuals.

imported>Doug Williamson: Layout.

2019-04-02T11:41:14Z

Layout.

← Older revision		Revision as of 11:41, 2 April 2019
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	Risk appetite will be ~~within~~ or equal to the maximum risk tolerance.		Risk appetite will normally be less than - or sometimes equal to - the maximum risk tolerance.

	Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.		Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.

imported>Doug Williamson: Distinguish strict definition from looser definition.

2019-04-02T11:40:13Z

Distinguish strict definition from looser definition.

← Older revision		Revision as of 11:40, 2 April 2019
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	Risk appetite means the amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.		''Risk management.''

			1.

			Strictly, risk appetite means the amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.


			:'''''Risk tolerance''''' represents the amount of risk that the firm can actually bear.
			:'''''Risk appetite''''' is the amount of risk that is actually desired. This might be seen in relation to the return sought by investors. Reward is normally only gained by taking risks, so limiting risk will limit reward.


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	Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.		Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.

	~~In the non-financial sector, risk appetite is sometimes also known as risk attitude, risk capacity or risk tolerance.~~


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	The risk appetite will be determined within the maximum risk capacity, in order to achieve the strategic objectives and business plan.		The risk appetite will be determined within the maximum risk capacity, in order to achieve the strategic objectives and business plan.


			2.

			The term 'risk appetite' is also sometimes used more loosely, interchangeably with risk ''attitude'', risk ''capacity'' or risk ''tolerance''.


	== See also ==		== See also ==
	* [[Conservative]]		* [[Conservative]]
			* [[Enterprise risk management]]
	* [[Guide to risk management]]		* [[Guide to risk management]]
	* [[Prudence]]		* [[Prudence]]

imported>Doug Williamson: Add links.

2019-03-08T10:33:08Z

Add links.

← Older revision		Revision as of 10:33, 8 March 2019
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	~~The~~ amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.		Risk appetite means the amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.


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	== See also ==		== See also ==
			* [[Conservative]]
			* [[Guide to risk management]]
			* [[Prudence]]
	* [[RAF]]		* [[RAF]]
	* [[Rewarded risk]]		* [[Rewarded risk]]
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	* [[Risk capacity]]		* [[Risk capacity]]
	* [[Risk management]]		* [[Risk management]]
	* [[Guide to risk management]]
	* [[Risk policy]]		* [[Risk policy]]
	* [[Risk register]]		* [[Risk register]]

imported>Doug Williamson: Layout.

2016-12-13T09:23:32Z

Layout.

← Older revision		Revision as of 09:23, 13 December 2016
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	Risk appetite will be within or equal to the maximum risk tolerance. Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.		Risk appetite will be within or equal to the maximum risk tolerance.

			Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.

	In the non-financial sector, risk appetite is sometimes also known as risk attitude, risk capacity or risk tolerance.		In the non-financial sector, risk appetite is sometimes also known as risk attitude, risk capacity or risk tolerance.

imported>Doug Williamson: Layout.

2016-12-13T09:22:47Z

Layout.

← Older revision		Revision as of 09:22, 13 December 2016
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	The amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.		The amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.


	Risk appetite will be within or equal to the maximum risk tolerance. Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.		Risk appetite will be within or equal to the maximum risk tolerance. Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.

imported>Doug Williamson: Layout

2016-11-16T09:45:08Z

Layout

← Older revision		Revision as of 09:45, 16 November 2016
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	The amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.~~<br />~~		The amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.

	Risk appetite will be within or equal to the maximum risk tolerance. Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.		Risk appetite will be within or equal to the maximum risk tolerance. Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.

imported>Doug Williamson: Add link.

2016-11-12T16:22:26Z

Add link.

← Older revision		Revision as of 16:22, 12 November 2016
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	== See also ==		== See also ==
			* [[RAF]]
	* [[Rewarded risk]]		* [[Rewarded risk]]
	* [[Risk averse]]		* [[Risk averse]]

imported>Doug Williamson: Expand.

2016-10-31T14:39:57Z

Expand.

← Older revision		Revision as of 14:39, 31 October 2016
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	The amount of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.<br />		The amount and types of risk that an organisation is willing to accept in pursuit of value, improved financial performance or of other benefits, with management responsible for setting boundaries or parameters for risk taking.<br />
	Risk appetite will be within or equal to the maximum risk tolerance. Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.		Risk appetite will be within or equal to the maximum risk tolerance. Any risk responses should be designed such that the 'net' (residual) risk after considering controls does not exceed these boundaries.

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	More 'aggressive' approaches to risk mean that higher levels of risk may be acceptable, if they are appropriately rewarded.		More 'aggressive' approaches to risk mean that higher levels of risk may be acceptable, if they are appropriately rewarded.


			The risk appetite will be determined within the maximum risk capacity, in order to achieve the strategic objectives and business plan.

imported>Doug Williamson: Add link.

2016-10-31T14:34:21Z

Add link.

← Older revision		Revision as of 14:34, 31 October 2016
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	* [[Rewarded risk]]		* [[Rewarded risk]]
	* [[Risk averse]]		* [[Risk averse]]
			* [[Risk capacity]]
	* [[Risk management]]		* [[Risk management]]
	* [[Guide to risk management]]		* [[Guide to risk management]]