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It is important to  review and revise a risk framework regularly because unfolding experience requires improvements to be made and the framework may need to be updates for environmental change (industry, economic, regulatory, political etc).

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Risk appetite reflects the level of risk an organisation is able and willing to accept. As a predefined value, it provides a guideline / barrier within the decision making process for management. A new innovation or growth idea risk will have to meet the risk appetite of the organisation or the risk lowered to an acceptable level (e.g transfer, mitigants, reduction)

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Risk frameworks allow decisions to be made with a better understanding of the relevant risks. The frameworks allows risks to be identified, analysed (understood for impact) and appetite determined. Management (e.g. acceptance vs mitigation vs transfer) could also be incorporated into decision making.

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Regularly reviewing and revising a risk framework ensures it remains fit for purpose as an organisation’s external environment, internal operations, and strategic objectives evolve. This enables emerging risks and changes to existing ones to be identified and managed effectively, reducing the risk of stagnation and outdated practices.

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Risk appetite is the agreed level of risk an organisation is willing to accept in pursuit of its objectives. It provides guardrails for decision-making, helping balance innovation and opportunity with effective risk management.

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Risk frameworks support better preparedness and informed decision-making by providing a structured approach to understanding an organisation’s risk landscape and guiding how risks are identified, assessed, mitigated, and monitored.

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Risks are constantly changing particularly in this very fast paced and ever changing world of: technology, changes in laws and regulations, impacts of war, pandemics...etc. Regularly reviewing our risk framework will help us stay relevant and adjust our processes to align with our risk appetite and tolerances. We need to be looking at more proactive approaches rather than wait and react when something does go wrong.

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A Risk Framework help a business determine how much risk (risk appetite) it is willing to accept when making decisions. As an example, in my current workplace, we are looking at implementing a new AI tool system, which improves efficiency. While there are clear benefits, we need to determine what could go wrong and what risks we are willing to accept. An example concern would be privacy and data breaches, so we will need to set limits (risk tolerance) around client data storage and the vendor must meet specific security and compliance requirements.

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Risk frameworks support better decision making by giving us a clear process to identify, assess and manage risks. Identifying what could go wrong and proactively putting controls in place for those risks can reduce their impacts, if and when they occur. Risk frameworks help businesses BE PREPARED for the unexpected and build/improve resilience.

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So it remains relevant, practical and effective in a changing environment.

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So it remains relevant, practical and effective in a changing environment.

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Risk appetite provides the boundaries for risk-taking within the risk framework.

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Risk appetite provides the boundaries for risk-taking within the risk framework.

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Risk frameworks support consistency, resilience, transparency, compliance and better decision-making across an organisation.

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Risk frameworks support consistency, resilience, transparency, compliance and better decision-making across an organisation.

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Risks are evolving in line with the changes across industries, regulatory updates, political, social and economic landscapes. Given a risk framework identifies, analysis and manages risks - it is important it is regularly reviewed and revised if needed. For example - AI not a risk 10 years ago, it evolved to an emerging risk 3-4 years back however, now - it is a current risk that must be managed actively. 

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Risks are evolving in line with the changes across industries, regulatory updates, political, social and economic landscapes. Given a risk framework identifies, analysis and manages risks - it is important it is regularly reviewed and revised if needed. For example - AI not a risk 10 years ago, it evolved to an emerging risk 3-4 years back however, now - it is a current risk that must be managed actively. 

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Risk appetite is an important aspect of risk framework as it provides a benchmark to an organisation in terms of their risk tolerance capacity. When risk tolerance is understood - risk appetite is clear and an organisation's objectives can be met safely keeping a check on internal, external and emerging risks. Risk appetite is core to any risk framework as it acts as bridge between an organisation's strategic objectives and daily operations.

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Risk appetite is an important aspect of risk framework as it provides a benchmark to an organisation in terms of their risk tolerance capacity. When risk tolerance is understood - risk appetite is clear and an organisation's objectives can be met safely keeping a check on internal, external and emerging risks. Risk appetite is core to any risk framework as it acts as bridge between an organisation's strategic objectives and daily operations.

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A risk framework provides structure and guidance to manage risks across an organisation. It assists risk professionals to systematically and consistently identify, assess and manage risk. Organisations are vulnerable to unknown risks and due to the complexity of their operations - risk management may often be perceived as a blocker if there's a lack of a process and structure.

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A risk framework provides structure and guidance to manage risks across an organisation. It assists risk professionals to systematically and consistently identify, assess and manage risk. Organisations are vulnerable to unknown risks and due to the complexity of their operations - risk management may often be perceived as a blocker if there's a lack of a process and structure.

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Internal and external risks are ever changing and evolving. Risk frameworks that are not continuously reviewed and revised run the risk of becoming difficult to integrate and implement and are likely to miss new issues or opportunities.

Regular review and revision does not always mean significant change, it means ensuring the framework remains relevant and usable in changing environments and sets the business up for success in learning from past lessons, managing new and emerging risks, as well as maintaining existing ones.

Reviewing and revising keeps risk management useful and real, not administrative.

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Risk Appetite is part of the corporate governance and risk management frameworks, outlining the level of exposure to risk the organisation is willing to accept.

It aligns to the organisation strategic goals and strategic risks and is the articulation of the amount of risk the board/organisation is prepared to accept in pursuit of its strategic objectives, managing strategic risks and preparing business objectives.

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A risk framework provides a consistent way to understand the internal and external risk environments (context & stakeholder engagement) and to undertake a process to identify (what could go wrong), assess (how big and likely is the impact/issue), prioritise (what matters most), mitigate (avoid, reduce, transfer, accept), manage (implement and oversight), review (ongoing assessment), and report on the risks.

it can help us make risk-based decisions to aid an organisation in achieving its objects through the acceptance, prevention or mitigation of risks.

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It’s important to review and revise a risk framework regularly because the organisation, its environment, and its risks change over time, and without updates the framework can quickly become out of date and no longer fit for purpose or useful for decision‑making.

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Risk appetite sits inside the risk management framework as the guardrail, helping an organisation decide how much risk it is comfortable with taking so decisions are made consistently and don’t accidentally drift beyond what the organisation has agreed is acceptable.

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A framework requires risks to be actively identified, described and discussed by the organisation, rather than emerging after something goes wrong. It also creates a systematic process to manage risks, that is standarised across the organisation.

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An effective risk framework should be dynamic, not be static. The framework needs to promptly respond to changes to the internal and external environment in which an organisation operates. Having a flexible, adaptive framework has become increasingly important having regard to the speed and scope of technological change, disruption and that impact that global events can have on Australian organisations

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The risk appetite allows organisations to "rank" or "grade" the acceptability of identified risks. This in turn provides guidance to management about whether it can undertake an action:

at all, if it could expose the organisation to a high or unacceptable level of risk; or

provided measures are in place to remove, mitigate or manage; or

accepting the level of any low risk that may result.

Additionally, if factors exist or change which of themselves may pose a risk to the organisation, the risk appetite assists management in prioritising the actions or controls to manage high or unacceptable risks.

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Better decisions about an action, project or plan etc are made when consideration is given to:

* the organisation's strategic or operational goals;

* its values or purpose;

* the potential associated risks and how they may be managed; and

* the organisation's risk appetite for those risks.

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In order to continue to have meaningful risk framework, there needs to be a continuous review to adjust and enhance in line with the business changes internally and the external changes in conditions. This is to ensure the risk framework continues to bring context for safe delivery of the company's objectives.

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Accepting risk is part of doing business and hence risk appetite sets the tolerance within which the company is accepting to operate. The risk appetite provide the boundaries of risk acceptance to the different functions of the company to operating safely.

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Risk framework provides the gaurd rails across strategy, policy and process to consistently identify, assess, prioritise and mitigate risk. It provide the confidence of an enterprise safe approach to ensure everything is within the Risk appetite of the company.

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Internal and External factors change. Business objectives, strategies, values and visions can change and if the RMF doesn't align to the changes, risk management will become ineffective leaving the organisation vulnerable to otherwise preventable events.

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Risk appetite is a part of the objective setting of any risk framework. It is a boards way of setting a standard level of expectation for how much risk the business is allowed to take.

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A comprehensive risk framework sets the expectations for risk identification, assessment and prioritisation allowing leaders to be better informed on their decisions prior to making them.

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The environment in which an organisation operates may change. It is important that the risk framework changes in response to changes in the environment to ensure it is operative effectively and not out of date.

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Because organisations, their objectives and their risks are forever evolving. For risk management to review effective and relevant, regular review and continual improvement needs needs to be considered.

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Risk appetite sets the level of risk the organisation is willing to accept in pursuit of achieving its objectives. It helps guide the decision making by setting clear boundaries

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once there is a shared understanding of both the opportunity and the risk, organisations can make more informed decisions. A framework helps provide a consistent and structured approach to this equation. 

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once there is a shared understanding of both the opportunity and the risk, organisations can make more informed decisions. A framework helps provide a consistent and structured approach to this equation. 

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You should review and revise as the business grows to ensure controls are effective. As businesses change so does risks so to keep the framework effective, relevant reviewing the framework will help the organisation to respond to new or evolving risks

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Shows how much risk an organisation is willing to take which guides decisions within the framework, ensuring risks stay in the acceptable limits

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It identifies possible problems that could happen, how likely they are and how bad they could be and helps compare different options that organisations can take. This in turn helps organisation make decisions more organised, consistent and less guesswork

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Risk management is not a one-time exercise. The internal and external environment is constantly changing which can increase or decrease risk over time. Adjustments are needed to ensure that the management of risk is relevant and effective, so that the organisation can continue to make the best decisions on up to date information.

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Risk Appetite is the amount of risk an organisation is comfortable accepting to purse the organisation's business objectives. This helps guide decision-making and planning processes to ensure that the organisation doesn't become excessively risk avoidant and miss out on the opportunity to innovate or enter into new territory

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A risk framework helps organisations better understand their risks by systematically identifying, assessing, prioritising and mitigating them. As decisions need to be made, if the risk framework is successfully build into strategic planning and operational processes, leaders can better understand their risk appetite and the potential impacts of the decisions at hand.

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Risks, operations and external conditions change, so the framework must stay current and effective to support good decision making.

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It sets the boundaries for how much risk is acceptable, guiding which options can be chased and which require controls or avoidance.

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In order to have a up to date risk framework those responsible for creating the framework need to be aware of any governing board or the organisations "risk appetite" which is how much risk they are happy to tolerate.

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Risk framework assists in makin better decision as all decision makers are informed of the potential of what could go wrong before making decision. Decisions can be made based on actual planning and managing rather than "what ifs"

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1. How can a risk framework assist in making better decisions?

The framework provides for the risk appetite that allows decision makers the ability to make decisions that are within the limits of the risk tolerance levels.

Additionally a framework provides for a structured way within which risks can be assessed providing for potential risks and how these can be managed by the

decision maker for decisions and opportunities thus allowing for potential

mitigation against unforeseen negative consequences.

2. How does risk appetite fit within a risk framework?

The risk appetite fits prior to the development of risk matrix whereby risks are managed according to the appetite and within tolerance levels for risk. In CSO ERM this should occur at the strategic planning and decision making process. In ISO 31000 the risk appetite and tolerance are not prescribed how this is defined or implemented.

3. Why is it important to review and revise a risk framework regularly?

To ensure that risk is not a set and forget or ticking a box it is important that the risk framework is regularly reviewed. The risk framework should be a living document that is dynamic and adaptable. In the period review of the framework it gives organisations the ability to take the opportunity to embed within the culture of the organisation any lessons learned adjust for new and emerging risks as well though communication and participation ensure the organisation is adopting better risk management strategies.