Building a Robust Operational Risk Appetite Statement

Andrew Smart has recently developed a whitepaper on designing an operational risk appetite statement. This paper outlines a seven step process which enables organisations to deliver an operational risk appetite statement which will meets regulatory obligations while adding real business value. This paper was recently featured in new e-magazine, The Risk Universe, which is a new online publication developed by industry professionals, for industry professionals. Focusing on operational risk management, Risk Universe aims to provide all the information Risk Managers need.

Alongside the seven step 'how-to' process/guide, the benefits of a strong appetite statement are explained and real practicalities of managing and accessing risk appetite are demonstrated, including using the appetite alignment matrix. With mounting regulatory demands faced by many financial institutions, and other regulated industries, a robust risk appetite statement assists organisations to execute their strategy execution by clearly defining the boundaries within which they can operate, and improve risk management processes by guiding tolerance setting. By following the seven step procedure, alongside the use of key risk management tools, organisations can expect to improve their strategic execution, whilst reducing risk-related losses and delivering regulatory compliance.  

To download this whitepaper, click here.