Risk Appetite
Attitudes to risk can vary considerably across a spectrum of risk-taking. Some businesses and sectors are more risk averse, while others are more open to taking on risk.
The amount and type of risk a company is willing to take to meet its strategic objectives is known as its risk appetite. By setting a risk appetite and communicating it effectively to all staff, companies establish a risk threshold.
Our Risk Appetite course explains why setting a risk appetite is important and how to implement this model in your company.
Learning objectives
- Define risk appetite and its role and importance in our Company's overall risk management framework
- Apply the risk appetite model in your day-to-day role
- Recognise who takes ownership of risk appetite management and learn about your responsibilities in this area
- Write risk appetite statements
- Communicate and document risk appetite actions
Welcome
- Learning objectives
- How to complete this course
What is risk appetite?
-
Risk appetite as part of a risk management framework
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The Management of Risk (MoR) framework
Why is determining risk appetite necessary?
- You decide: The nature of risk appetite
Risk categories
The risk appetite model
- A practical example
- Control & mitigation measures
The risk appetite scale
- You decide: Every company is different
Who determines the risk appetite in our company?
- Scenario: Robert recognises a change in risk
- Scenario: The news reaches Samantha
Risk appetite statements
- Risk appetite detailed thematic statement
- A financial risk detailed thematic statement
- Acting on risk appetite in extraordinary situations
- Scenario: The perfect storm
Communicating & documenting risk appetite decisions
- You decide: Communicating, documenting & recording risk appetite
