Risk Appetite Redux

In the “Risk, risk everywhere and not an appetite for it” post I proposed the following spur-of-the-moment-inspiration-through-significant-dose-of-caffeine definitions for risk appetite and risk tolerance: “Risk appetite: This is your general, high level expression of what you are, or aren’t willing to risk in order to reach your goal. Get your goodies. Join the dark side to get your hot little hands on their cookies. Whatever it is that your long term goal is. An example of a risk appetite would be: I’m happy to risk 10% of everything I have in order to get at least 20% profit.