---
title: "Risk appetite"
description: "How much risk, and of which kinds, an organisation is prepared to take on in pursuit of its objectives."
canonical: https://aigovernanceengineer.com/glossary/risk-appetite
author: "Jorge García Aibar"
license: "CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/)"
doi: https://doi.org/10.5281/zenodo.22956197
version: "0.5.0"
updated: 2026-09-24
---

# Risk appetite

How much risk, and of which kinds, an organisation is prepared to take on in pursuit of its objectives [1]. In this book it is compiled from an approved statement into a versioned data file that gates read, rather than left in a board paper.

- Developed in: [ch. 13, Risk appetite and tolerance, compiled into gates](https://aigovernanceengineer.com/bok/risk-management#risk-appetite-and-tolerance-compiled-into-gates)
- Chapters: [ch. 13, Risk Management](https://aigovernanceengineer.com/bok/risk-management)
- Contrast with: [Risk tolerance](https://aigovernanceengineer.com/glossary/risk-tolerance)
- In the glossary chapter: https://aigovernanceengineer.com/bok/glossary#t-risk-appetite

## Commonly confused

- **Risk appetite** vs **Risk tolerance**: How much risk the organisation will take on overall, against the residual band one system may carry Appetite is a board statement compiled to data; tolerance is the threshold a deploy gate reads

## Sources

[1] ISO 31073:2022, Risk management: Vocabulary (replaced ISO Guide 73:2009, withdrawn; referenced by identifier only). ISO/TC 262. 2022-02. https://www.iso.org/standard/79637.html (verified: primary)