Setting Your Risk Appetite

Risk appetite is the highest residual level your organization is willing to accept. Set it from the Risk Register header, add optional overrides per category, and ISO Mate flags any risk whose residual level ranks above appetite as over appetite so it rises to the top of your attention.

What risk appetite means

Appetite is expressed as a level band, not a number. A risk is over appetite when its residual level ranks higher than the appetite level, for example a high residual risk when appetite is set to medium. Because it works on the level band, appetite lines up directly with the low, medium, high, and critical bands described in Interpreting the 5×5 Risk Matrix.

Set the appetite level

  1. Open Compliance then Risks.
  2. Click Risk appetite in the header.
  3. Choose the highest level you will tolerate: low, medium, high, or critical.
  4. Save. ISO Mate recalculates the over appetite flag for every risk in your account.

Appetite by category

Appetite often differs by the kind of risk. In the same dialog you can set an override per category, for example a lower appetite for security than for operational risk. When a category is left on Use default, it follows the account default; when it has an override, ISO Mate evaluates risks in that category against the override instead. Changing a default or an override recalculates the flag for every affected risk.

Where over appetite appears

Risks above appetite are marked in the register with an over appetite chip, highlighted on the compliance dashboard summary, and counted in the heatmap totals and reports. You can also filter the register by appetite to isolate them. This gives leadership a clear view of where action is needed. A risk that is over appetite and not yet signed off is flagged as acceptance required, covered in Recording a Risk Acceptance.

Choosing a level

A lower appetite surfaces more risks for attention. Many teams start at medium, which flags high and critical residual risks, then tighten it as their programme matures.

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