ERM glossary

Risk appetite

تقبّل المخاطر مقدار المخاطر التي تقبل المؤسسة تحمّلها لتحقيق أهدافها.

Risk appetite is the amount and type of risk an organisation is willing to accept in pursuit of its objectives. It is set by the board and turns a vague sense of caution into an explicit boundary.

Appetite is expressed per risk category and made measurable through risk tolerance thresholds and key risk indicator metrics. In COSO ERM it links enterprise risk management to strategy and objective-setting.

Related terms

See it in Rukn ERM

Rukn ERM puts risk appetite to work in a live, mobile, bilingual risk program — aligned to COSO ERM 2017.

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