Risk Appetite
Signifies an organization’s willingness to embrace or retain specific types and levels of risk to fulfill its strategic goals
Maximum amount of risk they are prepared to accept
Expansionary Risk Appetite
Organization is open to taking more risk in the hopes of achieving greater returns
Conservative Risk Appetite
Organization favors less risk, even if it leads to lower returns
Neutral Risk Appetite
Signifies a balance between risk and return
Key Risk Indicators (KRIs)
Essential predictive metrics used by organizations to signal rising risk levels in different parts of the enterprise
Allows organizations to evaluate the impact and likelihood of risks, allowing proactive management to prevent their escalation