Here is another interesting article from Norman, What is your risk appetite? | Norman Marks.
I acknowledge that terms such as risk appetite and risk tolerance are or are becoming standard in risk or uncertainty management. But I have also previously written that I have difficulties with those terms as follows: “One additional comment – about terminology issues – I can generally say that in certain circumstances I have issues with some of the risk and uncertainty terms that appear in some of the resources, depending on how those terms are used or described including in some circumstances, for example, risk appetite, risk tolerance, assessment, and similar terms. My issue relates to situations where the terminology or its use might imply that a specific level or quantity of risk is acceptable particularly when the possible resulting impact or harm could be significant. Even if developed through legal counsel, I would certainly assume and act as if risk management identification, evaluation and processes are discoverable in litigation. Additional discussion and consideration is needed.”
You can also view: Risk & Uncertainty Management Form – Processes & Oversight, Risk & Uncertainty Management Form – Processes & Oversight Dave Tate Esq 03282013
Dave Tate, Esq.