The organization published risk appetite statements, but ERM reports never reference them when escalating issues. What alignment practice is missing?
Select an answer to reveal the explanation.
Short Explanation
Appetite without reporting is a diet plan you never check. When issues come up, ERM should say whether you are still inside the lines you already wrote—or blowing past them.
Full Explanation
Risk appetite and tolerance statements guide how much risk the enterprise is willing to accept. ERM reporting and escalation should reference those statements so leaders can judge residual risk against agreed limits. Ignoring appetite disconnects governance documents from actual decisions.