Risk appetite and risk tolerance: What's the difference?

This guide distinguishes between risk appetite - the amount and type of risk an organization is willing to accept to achieve strategic objectives - and risk tolerance, which quantifies acceptable deviations from those objectives through measurable thresholds. The article explains how these metrics work together to help GRC teams prioritize which risks to address, mitigate, transfer, or accept while maintaining effective business operations and compliance. Reviewed by Lucas Hogue, GRC Subject Matter Expert.