Fundamentals of Risk Management

Appendix B
442
Term
Definition
reference
Risk assurance
Means by which an organization receives 
reasonable assurance that the significant 
risks are being adequately controlled
Table 34.2
Risk attitude
Long-term view of the organization to risk 
defined by the 4Cs of comfort, concerned, 
cautious and critical
Chapter 10
Risk capacity
Maximum level of risk to which the 
organization should be exposed, having 
regard to financial and other resources
Figure 25.1
Risk criteria
Basis for ranking or evaluation of the 
significance of a risk – will define the risk 
appetite of an organization
Chapter 25
Risk exposure
Level of risk to which the organization is 
actually exposed, either with regard to an 
individual risk or the cumulative exposure to 
the risks faced by the organization
Figure 25.1
Risk management
Management activities to deliver the most 
favourable outcome and reduce the volatility 
or variability of that outcome – see Table 4.1 
for range of definitions
Table 4.1
Risk management 
framework
Set of activities that support the risk 
management process, referred to as the 
risk architecture, strategy and protocols 
(RASP) and defined in Guide 73 as 
arrangements for designing, implementing, 
monitoring, reviewing and continually 
improving risk management
Table 21.1
Risk management 
information system (RMIS)
Computer software system or part of the 
intranet of the organization that records and 
communicates risk information
Table 26.3
Risk management manual
Documentation that includes all risk 
management policies, procedures, 
protocols and guidelines
Chapter 21

---