Organisations that are more heavily regulated – such as national infrastructure providers – may be more averse to risks and less worried about the opportunities piece, so it’s important to know the profile of your business when starting out.
What is the threshold?
One risk manager has taken the approach of surveying their board of directors to better understand the threshold.
To explain their process further, they took to Risk Leadership Network’s private messaging service to canvas the views of other risk managers.
The risk manager asked, “I am in the process of developing a risk appetite survey of board members, what type of questions should be included in my survey?"
This prompt inspired a range of helpful responses: here is a round-up of some of the key tips shared.
1. Be clear on your direction
A good appetite statement is forward-looking and clear about direction: where are you going?