Risk tolerance: Difference between revisions

Revision as of 09:46, 1 June 2015

The same as 'risk appetite'.
An absolute maximum acceptable level of risk. The risk appetite at a point in time then being identified in turn, within the maximum limit defined by the risk tolerance.

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-Risk tolerance describes objective(s) for control of the risk and desired level of performance.
+# The same as 'risk appetite'.
+# An absolute maximum acceptable level of risk. The risk appetite at a point in time then being identified in turn, within the maximum limit defined by the risk tolerance.
-If it is decided to take the risk, it is the extent to which an organisation is willing to accept identified risks, within boundaries which may be set by reference to the likelihood and size of potential adverse financial impact, or by reference to other criteria.
 == See also ==
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 * [[Risk policy]]
 * [[Risk register]]