Thomas Johnson, CISO at ServerCentral Turing Group, discusses the benefits of risk appetite and risk tolerance in decision making 
The importance of either can vary by company.
Your company may not realise it, but risk appetite and risk tolerance both play vital roles in decision making.
Picture this: it’s 2010. You’re an executive at a major bank. People are starting to talk about mobile cheque deposits – that is, letting customers deposit cheques by taking a picture of them with their smartphones. Sales and marketing are insisting you add this functionality to the new mobile app, but you quickly come up with a number of reasons why this is a bad idea. There’s no way you should offer such a product. It’s entirely too risky!
Of course, a few years later, your mobile cheque deposit app is up and running – and is a standard feature on most of your competitors’ apps as well.
What changed? The risk of offering versus not offering this feature.
Let’s break down this scenario a little more, as well as how and why calculating risk appetite and tolerance is important for every company. Companies must know…
