Risk Management 101 for IT Professionals Essential Concepts - The Role of Risk Appetite and Tolerance

The video tutorial explains the concepts of risk appetite and risk tolerance, using ISO 31000 as a framework. Risk appetite is defined as the level of risk an organization is willing to accept, while risk tolerance refers to the level of risk an organization can endure after risk treatment. The tutorial uses examples, such as a cloud computing company, to illustrate these concepts. It also highlights the importance of understanding these risks in decision-making and opportunity management.

What is the definition of risk appetite according to ISO terminology?

How does risk appetite vary between different types of organizations?

What happens when the risk exceeds an organization's risk appetite?

Explain the concept of risk tolerance and how it relates to risk appetite.

What role do risk appetite and risk tolerance play in risk management?