Sample Cyber Risk Appetite and Risk Tolerance Statement

Cyber Risk Appetite Statement

Our organization has a moderate risk appetite for pursuing new technologies and innovations that enable us to achieve our strategic objectives and deliver value to our customers. However, we have a low tolerance for risks that could result in significant financial losses, reputational damage, or non-compliance with applicable laws and regulations.

We are committed to protecting our critical assets, including sensitive customer data, intellectual property, and core business systems. We will invest in robust cybersecurity measures to mitigate risks and maintain the trust of our stakeholders.

Cyber Risk Tolerance Levels

- Data Breaches: We have a low tolerance for data breaches that expose sensitive customer information or intellectual property. Our target is to maintain a breach detection and response time of less than 72 hours.
- Financial Losses: We will not accept risks that could result in financial losses exceeding $5 million or 5% of our annual revenue, whichever is lower, due to cyber incidents.
- Downtime of Critical Systems: We have a low tolerance for extended downtime of our mission-critical systems, with a target of less than 4 hours of unplanned downtime per year.
- Compliance Violations: We have zero tolerance for risks that could lead to significant fines or penalties due to non-compliance with data protection regulations such as GDPR and HIPAA.
- Reputational Damage: We have a low tolerance for risks that could result in significant reputational damage, such as high-profile cyber-attacks or data breaches that receive extensive media coverage.

To ensure alignment with our risk appetite and tolerance levels, we will regularly review and update our cybersecurity policies, implement appropriate security controls, and conduct risk assessments to identify and mitigate emerging threats. Our leadership team is committed to fostering a culture of cybersecurity awareness and resilience throughout the organization.

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