Results for: risk appetite statement

Craps is a gambling game using dice. It became well-known to me from the Hollywood movies of mid last century when players gathered around a Craps table and rolled and cheered or expressed their frustration at loss after loss. Before you start rolling out your Risk Appetite Statement (RAS), and devolving decision making to evolve

In their McKinsey article “Decision-making: how leaders can get out of the way”, Iskandar Amino, Aaron De Smet and Kanika Kakkar highlight the need to devolve decision making for organisations to become more agile. One thing they did not mention was that devolved decision making needs communication about the organisation’s appetite for risk in certain

Appetite is the “A” word. For many it is a vexed issue (see last week’s blog on the benefits of a Risk Appetite Statement). Operationalisation is the process of translating the board and executive’s appetite for doing business. As is the preference of some, it will be through financial delegations and rates of return on

Unfortunately, I am still often talking to executives or board members who are skeptical about the value of documenting their risk appetite. I point out to them that in the absence of a properly thought through and compiled risk appetite statement, all you have is an implied level of suitable risk taking. And that employees

I’ve been speaking to a range of people recently about how to drive accountability for risk management across organisations. More on this coming – watch this space. Interestingly however is sometimes creating accountability starts bottom-up and not top-down. One of the reasons I get asked to help with risk appetite statements is because middle management