Skip to main content
Corporate and Organizational
Risk Management Initiative in Microfinance
Pricing and Exam Schedule
2019 PRM Transition
Thought Leadership Webinars
Risk Type Compass
Volunteer Leaders & Committees
Board of Directors
AORM | L2: Risk Appetite Statements and Tolerance Limits
Risk appetite is the foundation of any consistent framework. This Lesson reviews the best practices for structuring, cascading and communicating risk appetite statements. Based on years of practical experience, this Lesson presents cases, examples and suggestions to define sound risk appetite statements in firms.
Lesson 2.1: Risk Appetite Structure
• Definition of risk appetite
• Benefits of risk-taking
• The risk appetite funnel: risk appetite beyond tolerance for losses
• Communicating risk appetite
• Risk appetite and tolerance statements
Lesson 2.2: Risk Appetite & Framework consistency
• Structure of actionable risk appetite statements
• Risks to choose, to balance and to avoid
• Consistency with other Lessons of the framework
• Risk appetite and P/I matrix and scales
Lesson 2.3: Risk Appetite and reality checks
• In practice: bottom-up vs. top-down risk appetite definitions
• Risk appetite and reality checks
• Reputation risk appetite
• Decision-making and risk
• Excessive risk-taking
Discounted member price:
You could save:
Associate PRM Certificate Prep Virtual Training
Fundamentals of Financial Risk Management Virtual ...
MRM L1: Introduction to Model Risk Management...
MRM L2: Set Up MRM Framework across the Modelling ...
MRM L3: Establishing Model Inventory & Model...
MRM L4: Measuring the Model Risk & Model...