63 What is the relationship between risk appetite, risk attitude and entrepreneurship?

[@congdothanh9316]

Risk appetite: Driver Risk Attitude: choice Risk capacity: The last resort Ríks tolerance: measure with thred

[@Risk-Doctor]

Thank you for this useful summary. Your first two are right - risk appetite is the internal driver of risk-taking, and risk attitude is your choice about how much we want to take in practice. But risk capacity is not really "the last resort" - it expresses how much risk the individual, group or organisation can handle before it becomes unable to continue operating. And risk tolerance is a measurable expression of risk appetite. It is more common to use the term "risk threshold" for this. It gives upper and lower boundaries for risk exposure around an objective - if risk exposure is inside these boundaries, we are "within risk appetite", but if risk exposure goes beyond the risk thresholds then we are "outside risk appetite". I hope this helps to clarify these important concepts.