Risk appetite / Risk team structure [13]

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Bullet points include: Different commentators apply different nuances IRM thinks: Risk “appetite” brings connotations of food, hunger and satisfying one’s needs More appropriate to think in terms of the ‘flight’ or ‘fight’ responses to risk exhibited by most animals, including human beings Risk appetite represents a corporate version of exactly the same instincts and cognitive processes Kemp (2009) links risk ‘appetite’ to risk-reward trade-off, hence to portfolio optimisation and other risk budgeting principles

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