Discussion Paper on Risk Appetite
The Central Bank has published a discussion paper on the importance of an effective Risk Appetite Framework.
The purpose of this paper is to generate discussion and debate among stakeholders on risk appetite, its linkage with organisational strategy, and its importance for financial institutions. The main concepts and theories of risk appetite and its place within Risk Appetite Frameworks are considered. Finally, the paper provides some suggestions as to what a risk appetite statement might contain.
The paper is aimed primarily at directors and then at senior management within organisations regulated by the Central Bank.
The view of the Central Bank is that the Board is ultimately responsible for risk management and strategy and the paper sets out that risk appetite must be considered with strategy because they are fundamentally interlinked.
Submissions are invited from all interested parties by 1 September 2014 and should be made to email@example.com
A copy of the discussion paper is available here http://www.centralbank.ie/press-area/press-releases%5CPages%5CCentralBankpublishesDiscussionPaperonRiskAppetite.aspx