Risk Appetite and Tolerance:
There is a tremendous amount of misinformation generated about risk appetite and tolerance. This session presentation demonstrates how risk appetite and tolerance can be managed in a practical and realistic way. ISO 31000 does not use the term 'risk appetite' for very good reasons. This presentation will concentrate on how organizations can properly handle risk-based decision making. Featured topics include:
- Definitions of risk appetite and tolerance that make sense;
- How we develop risk criteria and use them in risk analysis and evaluation;
- Developing risk criteria based on your organization's critical success factors;
- Developing practical consequence and likelihood scales for qualitative risk analysis;
- What tolerance really means and how we use it to decide on the optimal approach to risk treatment.