An Enterprise Risk Appetite Framework translates high-level risk appetite into operational guidance through a hierarchy of appetite statements, tolerance thresholds, exposure limits, and KRIs. It establishes roles, responsibilities, and decision rights for risk-taking and includes breach escalation protocols. The framework aligns with strategy, capital planning, compensation, and performance management. A global logistics company might establish appetite for zero fatalities, tolerance for minor safety incidents below defined frequencies, monthly KRI monitoring of incident rates, and executive committee escalation for any tolerance breach, with remediation plans required within 48 hours.