Make risk appetite work for you. While too little risk stifles and inhibits growth, routinely adopting too much risk can eventually lead to loss when “luck” runs out on the wrong high-risk, high-reward scenario.
Make risk appetite work for you. While too little risk stifles and inhibits growth, routinely adopting too much risk can eventually lead to loss when “luck” runs out on the wrong high-risk, high-reward scenario.
Nevertheless, where decision-making and risk appetites and assessment come together on the same page, there’s a definite value to understanding just how much risk an organization must adopt before it starts seeing apparent, appreciable returns.
- NATURE OF THE BEAST
Risk appetite management begins with a mirror image. A healthy, productive risk appetite mirrors the objectives, planning and expectations of your business as a while. It acknowledges how much risk (and loss) the business can handle, and the collective willingness to adopt it. Finally, it takes all risk appetite management resources into account before getting approval by the company’s board.
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