Risk Tolerance
Risk tolerance is a quantitative measure which is closely linked to Risk Appetite. The
following table shows the Risk Tolerance score and its link to risk appetite for the
University of Aberdeen. Risk Tolerance levels are not included in the Risk Register.
However, risk tolerance links Risk Appetite to Risk scores, allowing one to establish
that risk scores are within the acceptable range for that risk area based on its risk
appetite.
Can you identify the Risk Tolerance score for your risk area?
Risk Appetite Rating
Avoid
Averse
Moderate
Open
High
Risk Score
1-3
4-6
7-9
10-13
14-16