ACCA SBL Syllabus D. Risk - Risk Attitudes - Notes ^{8 / 9}

The overall risk strategy determines the overall approach to risk.

Risk appetite determines how risks will be managed.

Risk capacity indicates how much risk the organisation can accept.

The overall strategy of an organisation will therefore be affected by risk strategy, risk appetite and risk capacity.

Some will be risk averse and some will be risk seekers, younger companies often need to be risk seekers and more established companies risk averse

Risk is a good thing because…

• Makes a business more competitive

• Prevents just “following the leader”

• Comes with rewards