Risk Appetite: Statements and Frameworks

An RMIA Virtual Course in partnership with The Protecht Group.

About

The setting of an organisation’s Risk Appetite is a critical component of a robust risk management framework. This workshop is focused on improving knowledge and skills in relation to setting Risk Appetite and Tolerance for all of your organisation’s key risks and developing a comprehensive Risk Appetite Framework and Risk Appetite Statement.

Course Overview

1.     Risk Appetite - What Does It Mean?

  • The concept of Risk Appetite
  • Appetite, Tolerance, Capacity
  • Purpose and use for risk appetite
  •      Escalation and Reporting
  •      Decision Making
  •      Assurance
  •      Strategic Planning

2.     External Guidance on Risk Appetite

  • Regulations and standards requiring Risk Appetite
  • ISO 31000 and Risk Appetite
  • Market guidance

3.     Risk Appetite Framework

4.     Risk For Which Appetite is Required

  • 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

6.     Appetite Articulation and Appetite Evaluation Zones

  • Qualitative appetite zones – How many? Labels? Meaning?
  • Escalation Zones - How many? Labels? Meaning?
  • Using the traditional matrix – does it make sense?

7.     Setting Qualitative Risk Appetite For Each Key Risk

  • Implications for each level of appetite – the other side: Strategy and Impact on Outcomes and Cost
  • Process of appetite setting

8.     Setting Thresholds For Risk and Performance Metrics

  • Determining which metrics? KPIs, KRIs and KCIs
  • Setting the boundary thresholds

9.     The Traditional Likelihood and Impact Matrix

  • Does it work for risk appetite?
  • Modifications needed to reflect risk appetite
  • Setting scales for Likelihood and Impact

10.   Setting Risk Tolerances for Financial Risks

  • Which measures can be used where data is plentiful?
  • Examples of key financial risk measures

11.   Setting Risk Tolerances for Non-Financial Risks

  • Which measures when data is not plentiful
  • Examples of key operational risk measures

12.   A Framework for Setting and Maintaining Appetite Levels

  • Roles, Responsibilities and Ownership
  • Reviewing and updating – when and how?

13.   Documenting the Risk Appetite

  • Content and Format – A blueprint RAS

14.   Operationalising the Risk Appetite

  • Cascading through the business
  • Artefacts to use: Polices, Delegations etc.

15.   Risk Reporting Using the Risk Appetite

  • Linking Board reporting back to the RAS
  • A proforma Board risk report
  • Managing by exception

Format of the Course

This course is delivered in an entirely online COVID-Safe format. The course is a total of six (6) hours delivered in four 90-minute sessions.

TRAINER: David Tattam from The Protecht Group

Author of 'A Short Guide to Operational Risk', David Tattam is an internationally recognised specialist in all facets of risk management, particularly at the enterprise level. David is the founder and current Director Research and Training for the Protecht Group, an Australian firm specialising in risk management software, consulting, advisory and training to a wide range of clients both locally and overseas. His career includes many years working with PwC, as well as two international banks. His achievements include the creation of the Middle Office (Risk Management Department) for The Industrial Bank of Japan in Australia and the complete implementation of all Australian operations, systems, procedures and controls for Westdeutsche Landesbank (WestLB). David’s passion is risk training, having developed numerous risk courses and trained many thousands over the past 2 decades. Protecht celebrated its 21st year in 2020.

INVESTMENT: $770.00 incl.GST for Members

$924.00 incl. GST for Non-Members

CPD: 12 points

For Group Bookings please email events@rmia.org.au or call 0430 157 508.

To register for this event go to Upcoming Events for current courses available.