Risk appetite and risk tolerance

COURSE DETAILS

Course Objectives

In this class you will learn how to identify key metrics that can be used to build risk appetite and risk tolerance statements. Course participants will walk away with the ability to:

1. Navigate the dynamic universe of risk appetite criteria using a proven set of common methods
2. Determine the differences and correlations of the terms risk appetite, risk tolerance, targets and thresholds
3. Develop approaches for overcoming obstacles
4. Explore tools for your own risk context
5. Construct a risk appetite and risk tolerance framework

Topics

1. Cultivate a risk appetite management mindset
2. Risk terms and correlations
3. Risk appetite framework, strategy, and accountability
4. Navigate risk appetite criteria using common methods
5. Examples to articulate and measure risk appetite
6. Measures of enterprise value
7. Five step risk appetite framework construction
8. Risk appetite management strategic value communication
9. Facilitate strategic decision-making employing risk appetite management

Exercises

Participants engage in activities and interactions designed to reinforce course concepts. Examples of exercises include:

1. Learn how to cultivate a risk appetite management mindset by establishing a baseline scenario to build upon throughout the course
2. Use RAM vocabulary to communicate your current professional business risk context story
3. Link strategy to risks by applying knowledge of the link between organization strategy and correlated risks executing it
4. Draft an action plan listing items for attention and development upon return to office