Improving your knowledge and skills around setting risk appetite and tolerance for your organisation’s key risks.
The setting of an organisation’s risk appetite is a critical component of a robust risk management framework. By the end of this course, you will gain insights into how to develop a comprehensive Risk Appetite Framework and Risk Appetite Statement for your organisation.
Course overview
In this course, you’ll learn:
1. The uses and value of risk appetite
Freedom to operate
Escalation and reporting
Decision making
Assurance
2. What risk appetite is and what it means
The concept of risk appetite
Appetite, tolerance, capacity
3. Risk appetite framework
Risk appetite and ISO 31000
Risk appetite as part of your ERM framework
The relationship between risk and reward
4. Determining risks to set appetite for
Linking to risk taxonomy
How granular?
5. Articulating risk appetite
Qualitative, quantitative and semi quantitative
Appetite for inherent and/or residual risk
The various ways risk can be measured and appetite articulated
A suggested framework for articulation
Qualitative
Quantitative – risk tolerances
Semi quantitative – risk matrix
Prohibition statements
6. Appetite articulation and appetite evaluation zones
Qualitative appetite zones
Escalation zone
7. Setting appetite and tolerance for outcomes and risks
Setting appetite for outcomes
Setting appetite for risks
Setting boundary thresholds
Visualising risk appetite and tolerances
8. Using the likelihood and impact matrix
Limitations of the risk matrix for risk appetite
Modifications needed to reflect risk appetite
9. Setting risk tolerances for financial and non-financial risks
Practically setting risk appetite
The principles of setting risk appetite
Setting risk appetite for financial risks
Examples of financial risk categories and measures
Setting risk appetite for operational risks
Setting risk appetite for strategic risks
10. The risk appetite statement
Content and Format – A blueprint RAS
11. Operationalising the risk appetite
Cascading through the business
Artefacts to use: policies, delegations etc.
12. Risk reporting using the risk appetite
Purpose of risk appetite reporting
Examples of reporting against risk appetite
13. Responsibilities for risk appetite
Roles, responsibilities and ownership
Who uses risk appetite
14. When risk appetite is revised
Dynamic risk appetite
Integration into strategic planning
Reviewing tolerance levels
Course expectations
Watch 23 videos
Answer 4 knowledge questions
Complete 1 interactive risk appetite test
Answer 10 quiz questions
Time
3 hours of video content
Approximately 4 hours for the whole course
Support included
Lifetime access
$858.00
or
Customise this course
Do you have a policy or process, or some subject-matter expertise that you would like to add to this course?
Talk to us about ways we can quickly tailor the course to suit your needs.