The following is a link to a new discussion by Norman Marks about risk appetite and risk tolerance that you should read, click here.
People who have read my prior posts know that I do not like the terms risk appetite and risk tolerance as they are evaluations that plaintiff attorneys might use to imply that the executives, board and company determined that an injury or accident level, number or severity was acceptable. That having been said, the terms risk appetite and risk tolerance are the terms that currently have become accepted.
If you would like to connect on LinkedIn, the following is my LinkedIn page, http://www.linkedin.com/in/davetateesq (click on the down arrow to the right of the box for sending an email and you should see a link to connect).
Thank you, Dave Tate, Esq., San Francisco, http://tatetalk.com