Setting your organization's risk appetite is a critical component of a robust risk management framework.
Key information and topics covered
The explicit reference to an organizational risk appetite has been around for a relatively short time. The concept of risk appetite, however, has implicitly been around forever.
Like most aspects of risk management there are those who love risk appetite and those that loathe it – and all shades in between.
In order to deliver value, risk appetite should not be considered a standalone concept. It should be an integral part of your Enterprise Risk Management (ERM) framework and a key part in your wider management framework. It should influence company culture and decision making and empower your organization to take the right amount of risk to achieve the right level of outcomes.
In this ebook, we share our experiences, lessons learned and guidance for benchmarking risk. If you are just starting on your risk appetite journey, the practical planning tools provided will help you get started.
What you will learn
- Risk appetite and the related concepts of risk tolerance, risk criteria and risk capacity
- Risk appetite purpose and value
- A risk appetite framework
- Articulating your risk appetite
- A practical plan for developing your risk appetite
- Operationalizing and using risk appetite across your organization
- Steps to develop your risk appetite
