from the CASA risk-oversight-and-management page
Risk appetite is managed through the application of a risk tolerance matrix contained within the Risk Management Framework. It incorporates applying the 'As Low As Reasonably Practicable' (ALARP) principle to the context in which any decision is being made or activity undertaken.
Safety is CASA's highest priority in all areas of aviation activity and therefore CASA has a low aviation safety risk appetite. That said, as we move from airline passenger transport, through aircraft charter and on to private and recreational aviation our risk appetite will naturally trend upward. This approach recognises both the ALARP principle and the Statement of Expectations which requires CASA to take a pragmatic, practical and proportionate approach to regulation as it applies to different industry sectors having regard to risk.