Business Pitch Dictionary by pitch.dog
Enterprise risk & controls · Core

Risk appetite

Also called: appetite for risk

ELI5

The amount and type of risk an organisation is willing to pursue or retain.

Used in conversation

“Add risk appetite to the risk register with an owner and mitigation.”

Pitch context

You will see “Risk appetite” in board papers, contracts, policies, risk registers and compliance reports when the discussion reaches enterprise risk & controls.

Why it matters: In enterprise risk & controls, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

  • Risk toleranceRisk appetite states the amount and type of risk an organisation is willing to pursue or retain; tolerance sets acceptable variation or limits.
Sources & evidence · 3

Direct term-level sources and supporting source families.