Why it matters

Risk appetite shapes decisions. Understanding shapes governance.

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The architecture

Overall + per-risk-type appetite.

Set at board / executive.

Communicated + operationalized.

AI risk appetite structureBoard / exec setsoverall + per-typeCommunicateto risk ownersGuides decisionstreat / acceptFormalize in written statement + risk framework document
AI risk appetite.
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How it works end to end

Written appetite statement.

Per-risk-type levels.

Update on strategy shifts.

Operationalized in decisions.