12 January 2016
How should you set up a risk appetite statement?
A risk appetite statement must be a good fit with an organisation’s objectives and its willingness to be exposed to risks. The basis for a risk appetite statement comprises a declaration documented on one or two A4 pages and covering all types of risks. In a narrative form, the statement describes the types and levels of risks that an organisation is prepared to be exposed to in order to realise its objectives. We express risk appetite in tolerance bands that can be low, medium or high.
Our set-up is immediately ready to use! Much of the necessary input is often already available and, in those instances where it still lacks depth or detail, we demonstrate what’s necessary by means of examples.