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Definition of Risk appetite
1. Noun. The degree of uncertainty that an investor is willing to accept in respect of negative changes to its business or assets. ''(Generic)'' ¹
2. Noun. The amount of risk, on a broad level, an entity is willing to accept in pursuit of value. ''(COSO)'' ¹
3. Noun. Amount and type of risk that an organization is prepared to pursue, retain or take. ''(ISO31000) ¹
¹ Source: wiktionary.com