White Paper

Revising the Playbook: Using a Risk Appetite Framework to Align Strategy and Risk

Company: Moody's Analytics

Moody's Analytics case study

Category: Operational Risk

Published: 15 January 2016

Format:

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Overview

Recently it has become increasingly important for financial institutions to develop a robust Risk Appetite Framework. However, integrating risk appetite into decision-making processes still remains a big challenge.

For many financial institutions, regulators have an expectation that capital distribution decisions are informed by risk identification and management processes that tie to a firm’s overarching risk appetite.

This white paper provides an in-depth analysis in risk appetite and provides an overview of some common problems organisations face. It introduces a solution to develop an integrated, transparent, measurable, and actionable Risk Appetite Framework.

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