---
sourceDocument: Yokohama Governance, Risk, and Compliance
sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/yokohama/governance-risk-compliance

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    - yokohama

ft:locale :

    - en-US

ft:publication_title :

    - Yokohama Governance, Risk, and Compliance

ft:clusterId :

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bundleId :

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workflow :

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---

# Define the risk appetite for a risk statement

# Define the risk appetite for a risk statement {#ariaid-title1}

* Release version: Yokohama
* 
* Updated January 30, 2025
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 1 minute to read

Define the risk appetite on the risk statement records in the Risk Management application to evaluate all the possible risks and set the boundaries for the acceptable
and unacceptable risks.

## Before you begin

Role required: sn_risk.manager

## About this task

A risk manager can define the risk appetite and tolerance for the risk statement and
then copy the qualitative risk appetite to the downstream risk statements and risks.
It helps businesses to take risks within their organizational capabilities and
define and manage an action plan when there's a breach. By defining the qualitative
(numerical scale and ratings) and quantitative (monetary value) appetite, a risk
user can understand the risk appetite and take decisions. For more information on
the risk appetite and tolerance, see [Risk appetite and tolerance in Advanced Risk](https://servicenow-prod.fluidtopics.net/5eOAVNe9DLUYTaqgR0yJBQ "You can define a risk appetite and tolerance within your organization by using the Advanced Risk application. A risk appetite and tolerance enable your organization to define the boundaries for acceptable and unacceptable risks.").

## Procedure

1. Navigate to AllRiskRisk Workspace.
2. Select the list icon ![List icon.]() and navigate to the risk statement.
3. Define the risk appetite for a new or an existing risk statement:
   * To define the risk appetite for a new risk statement, select New.
   * To define the risk appetite for an existing risk statement, select and open the required risk statement record.
   {#define-risk-appetite-on-risk-statement__choices_dbf_hgn_cwb}
4. On the form, select the Risk Appetite section and fill in the fields.  
   For a description of the field values, see [Risk appetite fields on the Risk Statement form](https://servicenow-prod.fluidtopics.net/owydIsyzDt_O2zHH4qWpWw "Learn about the risk appetite fields on the Risk Statement form. Use these fields to define the risk appetite, evaluate all the possible risks, and set the boundaries for the acceptable and unacceptable risks in the Risk Management application.").
5. Select Save.
6. **Optional:** To copy the qualitative appetite to the downstream risk statement and risks, select the more actions icon ![More actions icon.]() on the form and select Copy qualitative appetite.  
   Important:  
   You can only copy the qualitative appetite and tolerance to the downstream risks and risk statements when the risk appetite isn't overridden. You need to define quantitative appetite and tolerance for each level in the hierarchy.
* **[Risk appetite fields on the Risk Statement form](https://servicenow-prod.fluidtopics.net/owydIsyzDt_O2zHH4qWpWw)**   
  Learn about the risk appetite fields on the Risk Statement form. Use these fields to define the risk appetite, evaluate all the possible risks, and set the boundaries for the acceptable and unacceptable risks in the Risk Management application.

*[\>]: and then