Risk Acceptance vs Risk Tolerance. WorkLifeCyber

#tprm #cybersecurity #riskmanagement
Risk acceptance and risk tolerance are related concepts in risk management, but they have distinct meanings and implications. Here's an explanation of each with examples:
Risk Acceptance:
Risk acceptance refers to a deliberate decision by an organization or individual to acknowledge a specific risk and decide to proceed without taking further action to mitigate or avoid that risk.
This typically occurs when the potential benefits or the cost of risk mitigation measures outweigh the potential negative consequences of the risk.
Example:
An organization decides to accept the risk of a product launch delay due to a supplier's unreliability because the potential financial loss from delaying the launch is deemed less harmful than finding a new supplier.
Risk Tolerance:
Risk tolerance is the predetermined level of risk that an organization or individual is willing to accept within a particular activity, project, or portfolio. It sets boundaries for how much risk is considered acceptable.
It helps in making decisions about risk mitigation measures and informs risk management strategies.
Example:
An investment portfolio manager may establish a risk tolerance level of a 10% loss in a given year. This means they are willing to accept portfolio fluctuations within that limit, and any higher losses would trigger adjustments to stay within that tolerance.
In summary, risk acceptance is a specific decision to knowingly embrace a risk, while risk tolerance is a predefined limit that guides decisions regarding risk management. Organizations and individuals use these concepts to align their risk management strategies with their overall objectives and risk appetite.
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A few years ago I made a decision to switch careers. From accounting to tech! Best career decision I have ever made. It didn’t come easy but the love I developed for the field made me press on. What I realized was that it was difficult because I had no direction. I spent a lot of time reading everything and confusing myself. A friend of mine (J) freely mentored me and pushed me to do more. This channel was created in honor of her. I wanted go reach as many people as possible in a very effective way.
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[@lydiaoppong4029]

Another good one thank you. Please keep it coming

[@princemillieofficial1391]

This video was really helpful

[@germainkone9029]

Nice one. Thanks. How to avoid risk ( tolerance) then. Thanks

[@simplydel2433]

Appetite = the peanut behind you
lol
I like all the explanations, thank you kindly

[@worklifecyber]

Lol 💯

[@lydiaoppong4029]

I also like the thing next to you it looks good

[@worklifecyber]

It's finished 😆