Risk Appetite

What is the risk appetite?

ISO 31000 defines risk appetite as the: “total amount of risk that an organisation is prepared to accept, tolerate or be exposed to at any point in time” Abriska uses a standard Red-Amber-Green (RAG) matrix, by default, to represent an organisation's tolerance to any specific risks. The risk appetite is viewable by clicking on “RA Setup” from the main organisation screen, then selecting “Setup Risk Appetite”.

risk Matrix Setup

Individual cells within the risk matrix can be modified by clicking on the cell which will cause the cell to cycle through the available colours. The risk boundaries can be defined in multiple ways in order to handle non-integer values for risk scores that will arise during risk assessment.

Linear Risk Matrix Setup

If the organisation is using a linear risk matrix then input the upper boundaries for each colour in the text boxes. The lower boundaries cannot be set directly but are changed to equal the upper boundary of the preceding colour. The diagram does not update in real time; submit the form to save changes.

Adding New Colours

Click “Setup Colours” displayed on the appetite matrix screen and a list of configured colours is displayed. To modify a colour, click on a coloured box and a “colour picker” panel will appear. Choose a new colour by using the scale and clicking the required colour shade. This will then change the colour of this tab. To delete a colour, click the “delete” link associated with that colour.

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