MANAGEMENT

Detailed explanation-1: -Risk appetite is the level of risk that an organization is willing to accept while pursuing its objectives, and before any action is determined to be necessary in order to reduce the risk.

Detailed explanation-2: -Constructing a risk appetite The three levels of risk appetite should be addressed: strategic, tactical, and operational.

Detailed explanation-3: -Risk appetite is the amount of risk an organization is willing to take in pursuit of objectives it deems have value. Risk appetite can also be described as an organization’s risk capacity, or the maximum amount of residual risk it will accept after controls and other measures have been put in place.

Detailed explanation-4: -Risk appetite is the amount of risk an organization is willing to accept to achieve its objectives. Risk tolerance is the acceptable deviation from the organization’s risk appetite. On today’s roads, however, most drivers exceed the posted speed limits.