10.5 Determining risk appetite Flashcards
1
Q
List three factors that may affect the chosen level of risk appetite.
A
Legal requirements Risk preferences of key stakeholders Specialist knowldge and skills of the organisation's specialists Financial strength External factors like technology change
2
Q
Who should set the organisation’s risk appetite?
A
The board
3
Q
Why should the board set risk appetite?
A
The board has a broad view of the organisation as a whole, and it is a requirement of the UK Corporate Governance Code
4
Q
What is the role of the Chief Risk Officer in setting risk appetite?
A
Facilitating the board’s role in agreeing risk appetite, through arranging workshops of providing key information.
