risk appetite
Acceptable hazard level
Risk appetite is the level of risk an organization or individual is willing to accept in pursuit of goals.
A company with high risk appetite might pursue aggressive expansion; one with low risk appetite favors stability over potential gains.
The term appears frequently in corporate governance and investment contexts: The board reviewed the firm's risk appetite before approving the acquisition.
Related to but distinct from risk tolerance, which refers to capacity to absorb losses.
- uncertaintyState of being unsure
- toleranceWillingness to accept difference
- speculationUnproven theorizing or risky investment
- solvencyCapacity to pay debts
- due diligencePre-transaction reasonable care
willingness · nerve · gut feeling · threshold · stress testing · portfolio management · upside · limit · thrill · diversification · adrenaline · portfolio · reckless · conservative · venture · high stakes · all in · bold move
- riskdownside, product liability, threat assessment, peril, hazard
- risk managementhedging, hedges, diversification, insurance, reinsurance
- risk toleranceconservative, moderate, aggressive, cautious, bold
- trading slangbull, short, long, dip, pump
- market sentimentbullish, bearish, bullishness, bearishness, optimism
- risk analysisthreat assessment, failure analysis, likelihood, probability, severity
risk appetiterisk aversion
Preference for certainty
loss aversion · risk-off · cautiousness · conservatism · prudence
risk appetiterisk aversion
Preference for certainty
fearfulness · timidity · overcaution · wariness · flight to safety
risk, risky, appetite, risked, appetizer, risks, risking, riskiness, riskiest