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Risk appetite is quantified based on extent of financial or other loss the company is willing to risk when the outcome is unsure.
Mitigation only minimises the possibility of a negative income thereby still leaving a level of uncertainty.
It is the perception of this level of uncertainty and willingness to run the risk of the consequences, that guides decision. Hence there cannot be a balance between the two, as mitigation plans only tend to augment risk apetite.
The Risk appetite though is not clearly quantifiable. Hence risk mitigation only ensures that company increases its risk appetite as it is convinced that risk mitigation plans keeps the project /initiative within the acceptable risk levels.
