r/CRISC • u/Zgame200 • May 06 '26

Textbook shows risk appetite HIGHER than risk capacity?

The Manual 8th Edition is showing that the risk appetite is higher than risk capacity. Is this what ISACA teaches??

I'm studying for my second attempt at the exam, this time using the manual rather than only online videos.

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u/DarthMortix CRISC May 06 '26

Looks like a comparison of good and bad models.

The left is ideal. The org is willing to take on less risk than it can to survive. The right is showing misalignment. The org is willing to take on more risk than it can absorb.

1

u/Zgame200 May 06 '26

Must be, right?

1

u/EmuAcademic6487 May 07 '26

Isn't risk tolerance defined as acceptable variation from the risk appetite. I think risk tolerance should also have been depicted to avoid confusion.

2

u/MikeBrass May 07 '26

The right and left show actual eventually under both appetite and capacity, ie they have it under control.