According to Higgins (2010) “Risk appetite is the amount of risk an organization is willing to take on or is prepared to accept in pursuing its strategic objectives”, (p.16). This willingness is influenced factors such as financial resources, objectives, risk capacity, existing risk profile, risk tolerance and risk attitude (Wendell, 2012) and (COSO, 2012). Conducting it is important as it provides a vital piece of information; it can provide bounds (upper and lower) on the strategies and decisions that are utilized to pursue the organization's objectives. According to COSO (2012), risk tolerance is The acceptable level of variation relative to achievement of a specific objective, and often is best measured in the same units as those used to measure the related objective. In setting risk tolerance, management considers the relative importance of the related objective and aligns risk tolerances with risk appetite. Operating within risk tolerances helps ensure that the entity ...