Governance
Risk appetite statement
Formal definition
In governance, Risk appetite statement refers to an operating term used for identifying, logging, and resolving operational risks before they become major service failures.
What this actually means for you
Use Risk appetite statement to guide live decisions: set severity definitions and escalation SLAs so teams respond proportionately and quickly, with ownership and reporting agreed before board and committee decisions.
Example: At the next review checkpoint, Risk appetite statement is used in practice like this: a high-severity incident triggers a same-day response call with owners, mitigations, and review deadlines. Accountabilities are captured in team templates, reporting packs, and operating checklists.
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