Risk Appetite

Risk Appetite

1. Risk Capacity

   • To take risk vs. individual values at risk
   • Risk appetite is the pursuit of riks
   • Risk exposure is what is at risk
   • 95 per cent certainty lines

2. Risk exposure

   • TCR Calculations
   • Risk appetite
   • Marketplace volaitility

3. Nature of risk appetite

   • Guide 73
   • Negative Hazard risk
   • Uncertain control risk
   • Opportunity investment

4. Risk appetite statements

   • risk tolerance range
   • Strategic driver
   • planning tool for tactics
   • Operational constraints
   • stakeholders
     • company wide exposure
       • Desired level of RE
         • Acceptable volatility/uncertainty
           • Reconcile
             • Formalize and ratify

5. RM and Uncertainty

   • BS 31100 risk definition
   • ID of sign risks
   • Critical control
   • Internal audit

6. Risk appetite and lifestyle

   • Nature of risk
   • Effective control
   • Level of expenditure