Risk Appetite vs. Risk Tolerance: Know the Difference

This podcast episode outlines the crucial difference between risk appetite and risk tolerance in organisational risk management. Risk appetite represents the overall level of risk an organisation is willing to accept to achieve its strategic goals, while risk tolerance sets specific, operational limits for different risk types. The script stresses the importance of aligning these two concepts for effective governance, risk, and compliance (GRC). Practical steps for defining and maintaining this alignment are provided, along with advice for compliance officers on implementing these strategies within their organisations. The podcast concludes with a call to action, encouraging listeners to assess their organisation's risk management practices.

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