Abstract: Currently, the concept of risk appetite is a contemporary topic among large organizations, sparking in-depth discussions and investigations. However, there is considerable confusion surrounding this subject, particularly when it comes to crafting a comprehensive statement on risk management. The big question is whether each primary risk type should have its own statement or if there should be a universal statement covering all risk appetite within the organization. The ultimate objective of risk appetite is to attain corporate goals, and this applies to both banks and microfinance institutions.