Episode 74 — Set risk appetite and tolerance that leaders will enforce consistently (4A3)
This episode teaches you how to set risk appetite and tolerance in a way leaders can enforce consistently, which is critical because many governance failures come from appetite statements that are too vague to guide decisions. You’ll learn to express appetite in outcome terms, such as acceptable downtime, data exposure thresholds, compliance deviation boundaries, or financial loss limits, and to connect tolerance to specific decision checkpoints where approvals and escalations occur. We’ll discuss how to make appetite real by assigning ownership, defining measurement methods, and embedding it into portfolio prioritization, architecture standards, vendor approvals, and exception handling. Real-world scenarios include business units claiming “risk appetite is high” to bypass controls, leadership approving conflicting risk positions across similar services, and teams unable to decide because tolerance bands were never defined. For CGEIT questions, strong answers typically improve enforceability by turning appetite into measurable thresholds, aligning it to governance forums, and ensuring decisions are documented with evidence and accountability. Produced by BareMetalCyber.com, where you’ll find more cyber audio courses, books, and information to strengthen your educational path. Also, if you want to stay up to date with the latest news, visit DailyCyber.News for a newsletter you can use, and a daily podcast you can commute with.
