Your Risk Appetite Statement, and How it Aligns Your ERM Program With Your Strategic Plan
Enterprise risk management is an underutilized management practice that allows community-based financial institutions to become more efficient, smarter, and better able to compete in an increasingly complex environment.
In order to be aligned with your larger business strategy, your risk management team needs to understand how much risk your organization can take on and still stay safe. Knowing your risk limits is the first step in building this understanding, and that starts with your Risk Appetite Statement.
This article covers the main concepts in building your Risk Appetite Statement, and aligning it with your business strategy:
- Creating a Risk Appetite Statement
- Determining Key Risk Indicators
- How to use your Risk Appetite Statement when making business decisions