Conversations about risk tolerance and appetite within companies have not gone far enough despite many attempts to explore this subject, Norman Marks writes. Statements of an organization's risk appetite must be tied to guidance for decision-makers, and limiting talk of tolerance to just those risks deemed most significant is a recipe for failure, Marks writes. "Risk is created and modified by every business decision, and the potential effects of uncertainty need to be integrated into every decision-making process, from the setting and monitoring of strategy and performance, to the decisions made by front-line employees every day," he writes.

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