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Hungry for a successful risk appetite framework?

Posted by Michael Wein on July 29, 2011 at 16:57 in Opinions

Critical Success Factors for Developing a Risk Appetite Framework

  • Ensure it reflects management and the board’s vision for the Bank
  • Combines and integrates the strategy development and risk assessment processes
  • Need strong leadership and support for the risk appetite development process
  • Define risk appetite so that it articulates the actual risks the Bank can take and those it should avoid, including specific targets and tolerances
  • Captures sufficient data to assess performance against its risk appetite
  • Make sure risk appetite is consistent with the Bank’s control framework and capability

Notes from ERM in Banking Conference, Marcus Evans - NYC

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