How do you know whether to speed up (take the risk), slow down (minimize a risk), or even stop if you don’t understand all the things that might happen? You have to be able to assess and evaluate both the good and the bad so what you put on each side of the scale is in fact comparable.
Richard Chambers has shared his valuable insights in another post. In Europe’s Internal Auditors Are Already Identifying the Risks for 2021 he makes a number of excellent observations, especially his opening paragraph.
Norman Marks discusses points from a recent paper, Feeling hungry? A simpler, more intelligent approach to risk appetite, written by Chris Burt of Halex Consulting.