If you're the Risk Manager at an organization, it's a pretty safe bet that you're feeling like you don't have the resources available to properly secure your organization. You might also feel like it leads you to a reactive management style, pinged by regulators and following up instead of building baked in controls and security.
Building a proactive Enterprise Risk Management program can actually save your organization time and money. Through understanding what your organization's risk appetite is, you can begin to figure out where your biggest risks are, and from there you can allocate your budget and resources to the most severe potential losses. It can also help you make strategic decisions as your organization considers things like new service lines or investigating a new potential market.
Don't know how to build a Risk Appetite Statement? You aren't alone. This involves understanding the prescriptive and descriptive limits of your organization when it comes to the chances they take. It will involve lots of stakeholders, and even more conversation. To help, we've created an article Your Risk Appetite Statement, and How It Aligns Your ERM Program With Your Strategic Plan. Use it to learn both how to create your Risk Appetite Statement and how to determine the most important Key Risk Indicators (KRIs) you should be focused on.