Evaluate the Acceptable Risk Level

The acceptable level of risk differs from organization to organization depending on:

• How risk averse or risk inclined an organization is
• The circumstances and environment in which the failure may occur.

The current risk costs to two similar assets may be the same, but because one enjoys a higher profile than the other, the acceptable level of risk for both assets may be different.

With rising consumer awareness and expectations, the acceptable level of risk will also vary from time to time, and generally be on the increase.