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Risk tolerances, on the other hand, set acceptable levels of variation in performance that can be readily measured. For example, a company that says it doesn’t acceptrisks that could result in a significant loss of its revenue base is expressing a risk appetite. Risk Appetite. Risk Tolerance.
Before outsourcing your business processes or striking some other deal with vendors, you do need to assess the risks they pose. The six risks listed below are a good place to start. Begin by determining your organization’s tolerance for cybersecurity risk. Key Performance Indicators (KPIs) vs. Key Risk Indicators (KRIs).
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