The standard definition of risk appetite is “the amount of risk you are willing to take in the pursuit of objectives”.
To gauge the civility of an organization’s culture, adequate policies and training are not enough. The behavior and accountability of top leadership play a key role. You can’t delegate ethics. And it seems the "Weinstein Clause" indicates that boards are finally beginning to understand that.
As I was reading the book, I realized that I have a problem with organizations placing separate attention to reputation risk and its management. It’s simply an element, which should not be overlooked, in how any organization manages risk – or, I should say, how it considers what might happen in its decision-making activities.