Risk appetite in Risk Management

[Kumar56]

We have seen we can set up a Risk appetite at different levels, for instance:

Risk Statement

Entity

Risk

How do the different configurations relate to each other?

What is the order, or which one is valid for IRM?

If a risk has a risk statement with a different appetite than the one calculated with the methodology, what happens? Is there a conflict?

#GRC #risk #ARA

[Harihara Subra1]

Hi,

Risk appetite set on the Risk is considered while assessing the risk. The appetite set on the Risk statement and Entity are used to compare the Aggregated risk at the Entity level and the Risk Statement level.

So all the settings are valid. It is evaluated at different levels. Hope this is clear.

Thanks,

Hari