Risk appetite
FRM Part 1 glossary · Foundations Of Risk Management
Definition
The aggregate level and types of risk an organization is willing to accept in pursuit of its objectives.
Risk appetite in plain English
Appetite is a board-level choice about risk worth taking; it must sit below capacity and be translated into measurable tolerances and limits.
Related FRM Part 1 terms
FRM Part 1 practice questions · FRM Part 1 flashcards · FRM Part 1 study guide