Risk Appetite Glossary Definition

Term Risk Appetite
Definition

Risk Appetite is the amount and type of risk an organization or sponsor is willing to accept in pursuit of objectives.

Context & Usage

It influences risk thresholds, response strategies, governance decisions, and investment choices.

Risk owners and project teams use this concept when documenting uncertainty, choosing responses, escalating exposure, and reviewing whether risk actions are working.

Related concepts include Risk, Risk Register, Risk Owner, Issue, Opportunity and Contingency Plan.

Categories Cybersecurity, Compliance, and Access Management, Enterprise Applications, CRM, and Contact Center Systems