Which aspect is NOT considered part of risk appetite in Open FAIR?

Risk appetite refers to the level and types of risks that an organization is willing to accept in pursuit of its objectives. It encompasses various dimensions that help organizations define their stance towards risk management.

The willingness to take specific risks, preferences for various risk types, and how much risk an organization is willing to retain are all components of risk appetite. These aspects help an organization articulate its approach to risk management, aligning it with strategic goals and operational realities.

In contrast, the exact number of risks to avoid does not fall within the traditional definition of risk appetite. Risk appetite is more about qualitative measures and overall sentiments regarding risk management rather than quantitative metrics like a specific count of risks to be avoided. Understanding risk appetite involves evaluating a broad range of risk-induced scenarios rather than setting strict numerical limits on risk avoidance, making this aspect distinct from the conventional concept of risk appetite.