Appetite
The amount of risk that you are willing to accept.
Avoidance
Avoiding a risk by not doing something, by discontinuing a product, etc.
Cause
Something that contributes to the occurrence of a risk.
Consequence
A result of a risk occuring. An effect on an objective.
Contingency
Plans and preparations made in advance that are put into action if a risk occurs.
Control
Something that is put in place to modify the likelihood or the impact of a risk.
Impact
The effect of a risk occurring. Also, the size of this effect.
Likelihood
The chance of a risk occurring.
Level of risk
How “risky” a risk is. A combination of a risk’s likelihood and impact.
Objective
Goal. An intended outcome that could be affected by risk.
Risk
Uncertainty that matters to our objectives. A threat or opportunity.
Risk appetite
See Appetite.
Risk review
The process of identifying your risks, analysing and prioritizing them, and planning their treatment.
Scope
The area covered by our risk management.
Top level
The level of risk that is the “most risky” and most in need of attention.
Treatment
Carrying out actions to modify the level of risk.