Risk Appetite Framework
We define risk appetite on the basis of the organisation’s strategic objectives: relevant risk categories, quantitative and qualitative thresholds, and tolerance limits which trigger specific decisions when exceeded.
We define risk appetite on the basis of the organisation’s strategic objectives, rather than using a generic scale: we identify relevant risk categories (financial, operational, reputational, compliance), set quantitative and qualitative thresholds for each, and link these to tolerance limits which trigger specific decisions when exceeded.
Risk management only creates value when it supports decision-making, prioritisation and accountability.
The deliverables are designed for practical use, not just for filing.
A 30-minute conversation to assess priorities and draw up a practical plan — together.
Frequently Asked Questions
It is the formal definition of how much risk the organisation is prepared to accept, by category, in order to achieve its objectives — with thresholds that guide decisions on investment, control and prioritisation, rather than a generic statement of intent.
The process combines interviews, analysis of existing data and benchmarking, followed by an action plan with clearly defined responsibilities and deadlines.
We typically involve senior management, operational teams and, where applicable, internal audit in a phased process that is tailored to the organisation’s availability.
Let’s assess your priorities and draw up a practical plan — together.
