1
Q
What is Risk Capacity?
A
The objective amount of loss an enterprise can tolerate without its continued existence being called into question.
2
Q
What is Risk Appetite?
A
The amount of risk on a broad level, that an entity is willing to accept in pursuit of its mission.
3
Q
What is Risk Acceptance?
A
Should not exceed the risk appetite for the organization, and cannot exceed the risk capacity.
4
Q
What is Risk Tolerance?
A
Any deviation from the risk appetite that is not desirable but is known to be sufficiently below the risk capacity that acceptance of risk is still possible when there is a compelling business need and other options are too costly.
