ØDiscussion should be regularly held at the executive level to define the risk appetite and communicate the same across the departments. Discussions should encompass political, economic, social, technological, legal, environmental and financial issues that impact on agencies and on the whole-of-Government.
ØRisk tolerance can be defined as the acceptable variance from the bank’s risk appetite boundaries. The bank should develop processes to determine acceptable limitations and whether or not they are negotiable. Both, the risk appetite and risk tolerance will generally are dynamic in nature.  They will differ depending upon the particular challenge or opportunity at the time. They may change over time as new information and outcomes become available and also as stake holder's expectations evolve.
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