It is a procedure to determine the acceptability or tolerability of the risk. In this process, the findings of risk analysis are compared with set criterion. The criterion is set by the organization itself. In any business, at some point an organization has to take some risks for which they are already prepared to handle. This is referred to as risk appetite. Therefore it is important for an organization to set up its risk appetite before establishing the goals.<\/p>\n

However, on the other hand, the acceptable value of risk that an organization can tolerate is known as risk tolerance.<\/p>\n

The evaluation of risks depends upon both risk appetite and risk tolerance that whether it is tolerable or not. These results should be documented in risk register.<\/p>\n

Risk management<\/h2>\n

After risk evaluation and documentation it is important to manage the risks that have been assessed and analyzed. It becomes necessary when the situations become complex and need some advanced processes to manage it. ISO 31000 sets different methods that can be used for risk management in complex situations such as PMBOK and PMI. For risk management PDCA method is really helpful to identify and manage risks.<\/p>\n<\/div>

<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":425,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-quality-articles"],"yoast_head":"\n