《《Risk Appetite Investment Bank》.pdf

Risk appetite A market study Contents 2 Contents 3 Foreword 4 Executive summary 5 Background 6 Approach 10 Measures 14 Monitoring and reporting 18 Future challenges 19 Conclusion 2 Risk appetite A market study Foreword Welcome to the first Grant Thornton risk appetite market study. Recent increased regulatory and supervisory focus has demanded an articulation of risk appetite and improved decision making for organisations and this is the first in an ongoing series of studies designed to monitor and report on progress and future challenges across the market. Our rationale for undertaking the This is purely a study of market study stems from our discussions practice and is not intended to with a range of senior market recommend one approach over participants and their general reaction another, it simply conveys what the to understanding the concept of risk market told us. appetite. There was a keen interest into understanding what everyone else was doing and how far they had progressed. We also knew that demand would be heightened with timelines looming for delivery of draft Own Risk and Solvency Assessments (ORSA), in which the risk appetite frameworks, high level statements, sub statements and underlying metrics are a key component. Our study set out to define current maturity of practice, answering some of the common questions coming out of Stephen Kelly the market. Our intention is to conduct Risk and Capital Management Practice Leader this study periodically; monitoring T +44 (0)20 7728 3073 overall progress and trends across the M +44 (0)7976 963187 market in relation to risk appetite. E stephen.f.kelly@