Risk Appetite vs Risk Tolerance: Creating Balance with ISO 31000

Mon, 27 Oct 2025 10:19:30 +0000

In today’s dynamic business environment, organizations face increasing uncertainties—from market volatility and cybersecurity threats to operational and compliance risks. To navigate these effectively, businesses must understand how much risk they are willing to pursue and how much risk they are capable of absorbing. This is where the concepts of risk appetite and risk tolerance play a crucial role. ISO 31000 Training, the international standard for risk management, provides a structured framework to align both and ensure strategic balance.