Mapping Risk Appetite Scales with Residual Risk Rating Scales

[AjvadK]

Can anyone tell me how exactly qualitative appetite status is calculated? My risk appetite scales are default open/tolerant, flexible, moderate, cautious, and averse. My residual risk rating scales are very low, low, moderate, high, and very-high. How do I map these with each other? Could anyone please explain how this works? 

[Vaisakh Krishna]

Hi @AjvadK ,

You can find more details in the docs. There is a set of configuration you need to do and the details for those are here.  See below screenshot for reference. Let me know if it does not help or you have any specific queries.

 

[Henk Heath]

Hi  

Map your appetite scales in the Residual Assessment.

It makes it easier to picture when you read it Right to Left.

Example: 

WHEN I am Averse to risk  THEN I can only accept up to Very Low Risk Rating

WHEN I am Cautious of risk THEN I can accept up to Moderate Risk Rating (i.e. Very Low, Low and Moderate)

WHEN I am Hungry for risk THEN I can accept up to Very High Risk Rating (i.e. the full scale)

If you have configured the Risk to have an appetite of Cautious (can accept Very Low, Low and Moderate), then an assessment of the risk with a risk rating of Low will be acceptable, but if the assessment results in a high risk, then you will have breached appetite.