Risk Appetite Statement
Reference model
A risk appetite statement guides strategic decisions by clarifying acceptable risk levels.
About this model
A formal document that articulates the types and levels of risk an organization is willing to accept in order to achieve its objectives.
Originator not stated.
How to read it
- Review the defined risk levels to understand the organization's tolerance for various risks.
- Ensure alignment with strategic goals and stakeholder expectations.
What this does
Defines the level of risk an organization is willing to accept in pursuit of its objectives, guiding decision-making and strategic planning.
When to use it
Use it when establishing a clear framework for risk-taking aligned with the organization's goals and stakeholder expectations.
Not when: Do not use it when the organization lacks a defined strategy or when immediate risk decisions are required without a formal framework.
What happens next
Develop a risk management framework based on the appetite statement.
Golden thread
Builds on ←
- Organizational context
- Strategic objectives
Feeds into →
- Risk management framework
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Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.