Effective Framework to Define the Risk Appetite & Risk Tolerance of Your Organization to Support Strategy Planning and Execution

Synopsis

What is your business’s appetite for risk? Are its current risks a comfortable fit or is the business taking one risk too many? This workshop will help you help you understand, define and communicate your business’s appetite for risk. By removing the need to rely on ‘gut feel’ we can help managers make sound decisions on the risks your business retains, those it reduces through strategic or operational change, and those it transfers.

Learning Objectives: How you will benefit

• Understanding the Relationship between Risk and Return
• Make better informed business decisions about potential Opportunity
• Strike the optimal balance between daring and prudence.
• Develop a business culture with a high awareness of risk and effectiveness in Risk-Taking
• Understand the level exposure of your economic capital
• Identify and manage on the risks that exceed the defined appetite for risk

Workshop Outline: What you will cover

• What is Risk Appetite? Can you articulate your organization’s risk appetite?
• Risk & Capital: How do we determine how much capital we need?
• Risk appetite: What are our most profitable risks?
• Does this accord with the stakeholders’ views of risk?
• Is new business generation moving towards our desired risk profile or away from it? In other words are our risks “on strategy”?
• Where are our risk concentrations today? Why are they critical to our strategy?
• Capturing experts’ opinions of loss severities and frequencies
• Calculating statistics for individual loss scenarios
• And the total losses an organisation could sustain as a result
• Setting the Risk Appetite and tolerance level

Toolbox

• Take part in a business disruption simulation exercise
• Develop Checklists
• How-to procedures/reminders and templates sample

Testimonials

“I had been looking for a long time for a workshop like this one. The methodology covered during the workshop is both practical and well grounded. It makes the connection between coporate performance and rik management very obvious.” Director, Corporate Planning, Media group