You do not have permission to edit this page, for the following reasons:

This IP address has been blocked from editing Wikipedia.
This does not affect your ability to read Wikipedia pages.
Most people who see this message have done nothing wrong. Some kinds of blocks restrict editing from specific service providers or telecom companies in response to recent abuse or vandalism, and can sometimes affect other users who are unrelated to that abuse. Review the information below for assistance if you do not believe that you have done anything wrong.

The IP address or range 44.201.0.0/16 has been blocked (disabled) by ‪ST47‬ for the following reason(s):

The IP address that you are currently using has been blocked because it is believed to be a web host provider. To prevent abuse, web hosts may be blocked from editing Wikipedia.
You will not be able to edit Wikipedia using a web host provider because it hides your IP address, much like a proxy or VPN.
We recommend that you attempt to use another connection to edit. For example, if you use a proxy or VPN to connect to the internet, turn it off when editing Wikipedia. If you edit using a mobile connection, try using a Wi-Fi connection, and vice versa. If you are using a corporate internet connection, switch to a different Wi-Fi network. If you have a Wikipedia account, please log in.
If you do not have any other way to edit Wikipedia, you will need to request an IP block exemption.

How to appeal if you are confident that your connection does not use a web host's IP address:
If you are confident that you are not using a web host, you may appeal this block by adding the following text on your talk page: ((unblock|reason=Caught by a web host block but this host or IP is not a web host. My IP address is _______. Place any further information here. ~~~~)). You must fill in the blank with your IP address for this block to be investigated. Your IP address can be determined here. Alternatively, if you wish to keep your IP address private you can use the unblock ticket request system. There are several reasons you might be editing using the IP address of a web host (such as if you are using VPN software or a business network); please use this method of appeal only if you think your IP address is in fact not a web host.

Administrators: The IP block exemption user right should only be applied to allow users to edit using web host in exceptional circumstances, and they should usually be directed to the functionaries team via email. If you intend to give the IPBE user right, a CheckUser needs to take a look at the account. This can be requested most easily at SPI Quick Checkuser Requests. Unblocking an IP or IP range with this template is highly discouraged without at least contacting the blocking administrator.

This block will expire on 23:54, 31 July 2024.

Even when blocked, you will usually still be able to edit your user talk page, as well as email administrators and other editors.

For information on how to proceed, please read the FAQ for blocked users and the guideline on block appeals. The guide to appealing blocks may also be helpful.

Other useful links: Blocking policy · Help:I have been blocked
Your IP address is in a range that has been blocked on all Wikimedia Foundation wikis. The block was made by ‪AntiCompositeNumber‬. The reason given is Open proxy/Webhost: Visit the FAQ if you are affected .
- Start of block: 13:55, 18 August 2022
- Expiry of block: 13:55, 18 April 2025
Your current IP address is 44.201.113.141. The blocked range is 44.201.0.0/16. Please include all above details in any queries you make. If you believe you were blocked by mistake, you can find additional information and instructions in the No open proxies global policy. Otherwise, to discuss the block please post a request for review on Meta-Wiki. You could also send an email to the stewards VRT queue at stewards@wikimedia.org including all above details.

You can view and copy the source of this page:

((refimprove|date=February 2018))
'''Risk appetite''' is the level of risk that an organization is prepared to accept in pursuit of its objectives, before action is deemed necessary to reduce the risk. It represents a balance between the potential benefits of innovation and the threats that change inevitably brings. The [[ISO 31000]] risk management standard refers to risk appetite as the "Amount and type of risk that an organization is prepared to pursue, retain or take". This concept helps guide an organization's approach to [[risk]] and [[risk management]].

==Levels==
The Board of Directors are normally responsible for setting an organisation's risk appetite. In the UK the [[Financial Reporting Council]] says: "the Board determines the nature, and extent, of the significant risks the company is willing to embrace."<ref>((cite web |title=Guidance on Board Effectiveness |url=https://www.frc.org.uk/getattachment/61232f60-a338-471b-ba5a-bfed25219147/2018-Guidance-on-Board-Effectiveness-FINAL.PDF |publisher=FEC |accessdate=2 July 2019))</ref> The appropriate level will depend on the nature of the work undertaken and the objectives pursued. For example, where public safety is critical (e.g. operating a nuclear power station) appetite will tend to be low, while for an innovative project (e.g. early development on an innovative computer program) it may be very high, with the acceptance of short-term failure that could pave the way to longer-term success.

Below are examples of broad approaches to setting risk appetite that a business may adopt to ensure a response to risk that is proportionate given their business objectives.<ref>''Thinking about Risk -'' [http://webarchive.nationalarchives.gov.uk/20130102192817/http://www.hm-treasury.gov.uk/thinking_about_risk.htm ''Managing your risk appetite: A practitioner's guide''] November 2006 [[HM Treasury]], page 12.</ref>
* ''Averse'': Avoidance of risk and uncertainty is a key organization objective.
* ''Minimal'': Preference for ultra-safe, low-risk options that only have a potential for limited reward.
* ''Cautious'': Preference for safe options that have a low degree of risk and may only have limited potential for reward.
* ''Open'': Willing to consider all potential options and choose the one most likely to result in successful delivery, while also providing an acceptable level of reward and value for money.
* ''Hungry'': Eager to be innovative and to choose options offering potentially higher business rewards, despite greater inherent risk.

The appropriate approach may vary across an organization, with different parts of the business adopting an appetite that reflects their specific role, with an overarching risk appetite framework to ensure consistency.

==Measurement== 
Precise measurement is not always possible and risk appetite will sometimes be defined by a broad statement of approach. An organization may have an appetite for some types of risk and be averse to others, depending on the context and the potential losses or gains.

However, measures can often be developed for different categories of risk. For example, it may aid a project to know what level of delay or financial loss it is permitted to bear. Where an organization has standard measures to define the impact and likelihood of risks, this can be used to define the maximum level of risk tolerable before action should be taken to lower it.<ref>((cite journal |last1 = Hassani |first1 = B.K. |title = Risk Appetite in Practice: Vulgaris Mathematica |journal = The IUP Journal of Financial Risk Management |volume = 12 |issue = 1 |year = 2015 |pages = 7–22 |ssrn = 2672757))</ref>

==Purpose and benefits==
By defining its risk appetite, an organization can arrive at an appropriate balance between uncontrolled innovation and excessive caution. It can guide people on the level of risk permitted and encourage consistency of approach across an organisation.

Defined acceptable levels of risk also means that resources are not spent on further reducing risks that are already at an acceptable level.

==Main areas==
In literature,((Citation needed|date=January 2015)) there are six main areas of risk appetite:

# financial
# health
# recreational
# ethical
# social
# information

There is often a confusion between ''risk management'' and ''risk appetite'', with the rigor of the former now recovering some of its lost ground from the vagueness of the latter. When derived correctly, the risk appetite is a consequence of a rigorous risk management analysis, not a precursor. Simple risk management techniques deal with the impact of hazardous events, but this ignores the possibility of collateral effects of a bad outcome, such as for example becoming technically bankrupt. The quantity that can be put at risk depends on the cover available should there be a loss, and a proper analysis takes this into account. The "appetite" follows logically from this analysis. For example, an organization should be "hungry for risk" if it has more than ample cover compared with its competitors and should therefore be able to gain greater returns in the market from high-risk ventures.

==See also==
* [[Enterprise risk management]]
* [[Risk analysis]]

==References==
((Reflist))

((Authority control))

[[Category:Risk management]]
[[Category:Actuarial science]]
[[Category:Risk analysis|Risk analysis]]

Pages transcluded onto the current version of this page (help):

Risk appetite (edit)
Template:Ambox (view source) (template editor protected)
Template:Authority control (view source) (template editor protected)
Template:Category handler (view source) (protected)
Template:Citation needed (view source) (protected)
Template:Cite journal (view source) (protected)
Template:Cite web (view source) (protected)
Template:Delink (view source) (protected)
Template:Find sources mainspace (view source) (template editor protected)
Template:Fix (view source) (protected)
Template:Fix/category (view source) (protected)
Template:Hlist/styles.css (view source) (protected)
Template:Main other (view source) (protected)
Template:More citations needed (view source) (template editor protected)
Template:Refimprove (view source) (template editor protected)
Template:Reflist (view source) (protected)
Template:Reflist/styles.css (view source) (protected)
Module:Arguments (view source) (protected)
Module:Authority control (view source) (template editor protected)
Module:Authority control/config (view source) (template editor protected)
Module:Category handler (view source) (protected)
Module:Category handler/blacklist (view source) (protected)
Module:Category handler/config (view source) (protected)
Module:Category handler/data (view source) (protected)
Module:Category handler/shared (view source) (protected)
Module:Check for unknown parameters (view source) (protected)
Module:Citation/CS1 (view source) (protected)
Module:Citation/CS1/COinS (view source) (protected)
Module:Citation/CS1/Configuration (view source) (protected)
Module:Citation/CS1/Date validation (view source) (protected)
Module:Citation/CS1/Identifiers (view source) (protected)
Module:Citation/CS1/Utilities (view source) (protected)
Module:Citation/CS1/Whitelist (view source) (protected)
Module:Citation/CS1/styles.css (view source) (protected)
Module:Delink (view source) (protected)
Module:EditAtWikidata (view source) (protected)
Module:Find sources (view source) (template editor protected)
Module:Find sources/config (view source) (template editor protected)
Module:Find sources/links (view source) (template editor protected)
Module:Find sources/templates/Find sources mainspace (view source) (template editor protected)
Module:Message box (view source) (protected)
Module:Message box/ambox.css (view source) (protected)
Module:Message box/configuration (view source) (protected)
Module:Namespace detect/config (view source) (protected)
Module:Namespace detect/data (view source) (protected)
Module:Navbar (view source) (protected)
Module:Navbar/configuration (view source) (protected)
Module:Navbox (view source) (template editor protected)
Module:Navbox/configuration (view source) (template editor protected)
Module:Navbox/styles.css (view source) (template editor protected)
Module:String (view source) (protected)
Module:Unsubst (view source) (protected)
Module:Yesno (view source) (protected)

Return to Risk appetite.

Retrieved from "https://en.wikipedia.org/wiki/Risk_appetite"