The Journal of Financial, Accounting and Economics
Vol. 3 No. 1 (2026)

Risk Assessment and Risk Tolerance in Strengthening the Effectiveness of Organizational Risk Management: A Systematic Literature Review

Dewa Gede Raka Brahma Kumara (Unknown)



Article Info

Publish Date
31 Jan 2026

Abstract

This study aims to systematically examine the risk assessment process and the determination of risk tolerance levels in the context of organizational risk management. The method used is a Systematic Literature Review (SLR), which involves analyzing various scientific publications released between 2015 and 2025, obtained from databases such as Scopus, Web of Science, and Google Scholar. The findings reveal that risk assessment plays a crucial role in identifying, analyzing, and evaluating potential threats to the achievement of organizational objectives. Meanwhile, risk tolerance serves as the threshold for risk acceptance, enabling organizations to balance risks and opportunities in strategic decision-making. Factors such as organizational culture, resource capacity, and external conditions were found to influence the level of risk tolerance applied. The literature synthesis indicates that alignment between risk tolerance and risk appetite can enhance the effectiveness of risk management and strengthen an organization’s competitiveness and sustainability. This study provides a theoretical contribution to understanding the relationship between risk assessment and risk tolerance, as well as serving as a practical guide for organizations in developing adaptive and measurable risk management systems.

Copyrights © 2026






Journal Info

Abbrev

JFAE

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The Journal of Financial, Accounting, and Economics (JFAE) is a scientific journal published by the Global World Scientific which aims to publish articles of empirical and theoretical studies in the field of Accounting, Finance, and Economics. Editors accept articles in English or Bahasa and were ...