Risk appetite / Risk team structure [9]

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Bullet points include: Risk appetite: the quantum of risk that the firm is willing to accept within its overall capacity Risk capacity: the maximum risk that the firm can bear which is linked to capital, liquid assets, borrowing capacity etc. Risk profile: target risk profile represents the allocation of appetite to risk categories. Actual profile represents risk that are currently assumed Risk categories: should be tailored for business Adapted from Barfield (2009). Risk Appetite – How hungry are you? PWC

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