Risk Appetite

The University defines “Risk Appetite” as the level of Risk in any particular case that the University is prepared to accept before action is deemed necessary to manage that Risk. Risk appetite determines if risks need to be managed and gives us hints about how they are to be managed.

At the project-level, risk appetite of stakeholders should be considered in risk calculations where it is known or is discernable. The steps to managing risk include evaluating risks according to the stakeholder’s risk appetite. The University, a key stakeholder in every project, publishes its risk appetite in a Statement of Institutional Risk Appetite.