Risk Appetite vs Exposure is an indicator that helps organisations understand how well they are dealing with the risk agenda. Risk appetite can be defined as the amount and type of risk that an organisation is prepared to seek, accept or tolerate. Risk exposure is the extent to which an organisation is subject to risk events.
This indicator will be included in my book: Key Performance Indicators - the 100 measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.