FUNDAMENTALS OF A RISK MANAGEMENT FRAMEWORK
MORNING SESSION

• What is ‘Risk Appetite’?
• What is a Risk Appetite Framework?
• Generic process for setting a Risk Appetite Framework
• Principles for an effective Risk Appetite Framework
• Core elements of a risk appetite framework
• Concept of ‘Risk Capacity’
• Risk ‘tolerances’ and risk ‘limits’
• Risk profile
• Ideal reporting structure for risk limits and risk tolerances – workshop/team discussion
• Role of risk ‘owners’.

AFTERNOON SESSION

• 11. Sources of Risk for financial institutions in the context of developing an effective Risk Appetite Framework
• 12. Defining the ‘The Risk Appetite Statement’ with examples
• 13. Key stakeholders in the Risk Appetite Statement
• 14. Characteristics of a good Risk Appetite Statement
• 15. Overall design considerations of a Risk Appetite Statement
• 16. Format of the Risk Appetite Statement
• 17. Unit of measurement considerations in the context of a Risk Appetite Framework.
• 18. Considerations in setting Risk Tolerances with example statements
• 19. Attributes of Effective Risk limits
• 20. Monitoring and breach management of Risk Appetite.

BRINGING RISK APPETITE INTO PRACTICE
MORNING SESSION

• 1. Developing a baseline in the formation of a RAS
• 2. Process for defining and maintaining a RAS
• 3. Benefits of embedding a RAS
• 4. Illustrative example of Risk Capacity, Risk appetite, tolerance limits and tolerance triggers in practice.

AFTERNOON SESSION

• 5. Managing risk profile limits – An illustrated example
• 6. Alignment between strategy and risk profile of an Organisation
• 7. Achieving the right balance between strategy and appropriate risk appetite statements
• 8. Group Activity – Formulating Risk Appetite statements for your organisation
• 9. Final remarks – Conclusion – Training Evaluation

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