Executive Summary - The Institute of Risk Management

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Designing a risk appetite6 Has the board and managementteam reviewed the capabilities of theorganisation to manage the risks thatit faces?7 What are the main features of theorganisation’s risk culture in termsof tone at the top? Governance?Competency? Decision making?8 Does an understanding of risk permeatethe organisation and its culture?9 Is management incentivised for goodrisk management?10 How much does the organisationspend on risk management each year?How much does it need to spend?11 How mature is risk management in theorganisation? Is the view consistent atdiffering levels of the organisation?Is the answer to these questions basedon evidence or speculation?Constructing a risk appetite12 Does the organisation understandclearly why and how it engageswith risks?13 Is the organisation addressing allrelevant risks or only those that can becaptured in risk management processes?14 Does the organisation have aframework for responding to risks?Implementing a risk appetite15 Who are the key external stakeholdersand have sufficient soundings beentaken of their views? Are those viewsdealt with appropriately in the finalframework?16 Has the organisation followeda robust approach to developingits risk appetite?17 Did the risk appetite undergoappropriate approval processes,including at the board (or riskoversight committee)?18 Is the risk appetite tailored andproportionate to the organisation?19 What is the evidence that theorganisation has implementedthe risk appetite effectively?16
Governing a risk appetite20 Is the board satisfied with thearrangements for data governancepertaining to risk management dataand information?21 Has the board played an active part inthe approval, measurement, monitoringand learning from the risk appetiteprocess?22 Does the board have, or does it need,a risk committee to, inter alia, overseethe development and monitoring ofthe risk appetite framework?The journey is not over -final thoughts23 What needs to change for nexttime round?24 Does the organisation have sufficientand appropriate resources and systems?25 What difference did the process makeand how would we like it to have animpact next time round?17
Page 1 and 2: AppetiteRisk & ToleranceExecutive S
Page 3 and 4: ForewordRisk appetite today is a co
Page 5 and 6: All successful organisations need t
Page 7 and 8: We do not regard this guidanceas th
Page 9 and 10: Risk appetite -principles and appro
Page 11 and 12: Risk and controlWe think that this
Page 13 and 14: We believe that the appetite will b
Page 15 and 16: Flexibility - all of this needs to
Page 17: Questions forthe boardroomBelow we

Executive Summary - The Institute of Risk Management

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