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sourceDocument: Zurich Governance, Risk, and Compliance
sourceDocumentLink: https://www.servicenow.com/docs/r/zurich/governance-risk-compliance

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ft:locale :

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ft:publication_title :

    - Zurich Governance, Risk, and Compliance

ft:clusterId :

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---

# Define the risk appetite for an entity

# Define the risk appetite for an entity {#ariaid-title1}

* Release version: Zurich
* 
* Updated July 31, 2025
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 1 minute to read

Define the risk appetite on the entity records in the Risk Management
application to evaluate all the possible risks and to set the boundaries for the acceptable
and unacceptable risks for your business.

## Before you begin

Role required: sn_risk.user

## About this task

Entity owners can define the risk appetite and tolerance and then copy the
qualitative risk appetite to the downstream entities. By doing this task, a business
can define and manage an action plan when there's a breach. By defining the
qualitative (numerical scale and ratings) and quantitative (monetary value)
appetite, a risk user can understand the risk appetite and take decisions. For more
information on the risk appetite and tolerance, see [Risk appetite and tolerance in Advanced Risk](https://www.servicenow.com/docs/MbNo_E0MG3ZaxNrk8fl0~g "You can define a risk appetite and tolerance within your organization by using the Advanced Risk application. A risk appetite and tolerance enable your organization to define the boundaries for acceptable and unacceptable risks.").

## Procedure

1. Navigate to AllRiskRisk Workspace.
2. Select the list icon ![List icon.]() and navigate to the entity.
3. Define the risk appetite for a new or an existing entity:
   * To define the risk appetite for a new entity, select New.
   * To define the risk appetite for an existing entity, select and open the required entity record.
   {#define-risk-appetite-on-entity__choices_dbf_hgn_cwb}
4. On the entity form, select the Risk Appetite section and fill in the fields.  
   For a description of the field values, see [Risk appetite fields on the Entity form](https://www.servicenow.com/docs/fSN6d0Fhw1BbrsUG45_~aA "Learn about the risk appetite fields on the Entity form. Use these fields to define the risk appetite, evaluate all the possible risks, and set the boundaries for the acceptable and unacceptable risks in the Risk Management application.").
5. Select Save.
6. **Optional:** To copy the qualitative appetite to the downstream entities, select the more actions icon ![More actions icon.]() on the form and select Copy qualitative appetite.  
   Important:  
   You can only copy the qualitative appetite and tolerance to downstream entities when the risk appetite of the downstream entity isn't overridden. You must define the quantitative appetite and tolerance for each level in the hierarchy.
* **[Risk appetite fields on the Entity form](https://www.servicenow.com/docs/fSN6d0Fhw1BbrsUG45_~aA)**   
  Learn about the risk appetite fields on the Entity form. Use these fields to define the risk appetite, evaluate all the possible risks, and set the boundaries for the acceptable and unacceptable risks in the Risk Management application.

*[\>]: and then