General Concepts Regarding Risk Appetite

Risk appetite is a very complex system, therefore one of the most important element of a company’s enterprise risk management (ERM) is the risk appetite defining. A proper risk management means making good choices towards the risks a company faces in order to achieve its objectives and measures to mitigate those risks, not to avoid them. Therefore, the moment risk appetite is understood and clearly defined can become a powerful tool both for managing the occurred risks and business performance enhancing.