New guidance from ISACA looks at how enterprises can improve understanding, communication, and application of risk terms to better manage risk tolerance. The white paper Using Risk Tolerance to Support Enterprise Strategy identifies key benefits of risk tolerance such as supporting conscious and informed risk taking, promoting consistent risk management practices, and structuring the executive conversation around risk taking. Effective approaches to implementing risk tolerance provide transparency around the risk management process and strengthen understanding of the enterprise’s risk profile.
According to the white paper, “the combination of risk capacity, risk appetite and risk tolerance create the strategic and operational boundaries for required successful risk-based decision-making and provide an opportunity to review implications of objectives and determine required action.”
Using Risk Tolerance to Support Enterprise Strategy is available as a free download.
