Risk appetite / Risk team structure [3]

Go to: Summary | Previous | Next   
Bullet points include: One of the most fundamental concepts in ERM is RISK APPETITE Defined, e.g. by KPMG (2009) as follows: “At its simplest, risk appetite can be defined as the amount of risk, on a broad level, that an organization is willing to take on in pursuit of value. Or, in other words, the total impact of risk an organization is prepared to accept in the pursuit of its strategic objectives Risk appetite therefore goes to the heart of how a company does business. How an organization wishes to be perceived by key stakeholders such as shareholders, employees, regulators, rating agencies and customers is a function of that company’s risk appetite” Note: commentators do not always distinguish clearly between risk appetite and risk tolerance

Contents | Prev | Next | ERM Lecture Series

Desktop view | Switch to Mobile