One of the things I am seen as an expert in is the field of risk. One of the hotly debated topics in risk is the value of a risk appetite statement. There are many reasons their value is debated, however, the real reason is because there are different recipes to produce risk appetite statements to suit the board and management’s personal appetite for risk. And unless board and management take the hardest approach, they either do more harm than good or simply waste their time.
There are essentiall