Developing, Defining and Quantifying Your Risk Appetite
Leadership often looks to their risk teams to help them gain a better understanding of new and emerging risks in order to make confident, strategic decisions within its risk appetite. This is especially true in times of crisis.
Join Resolver, Leeanne Barnes, Director of Enterprise and Operational Risk at Ontario Teachers’ Pension Plan, and Devi Mohan Das, Senior Manager of Risk Consulting at KPMG Canada as they walk you through strategies to help you define, implement and quantify your risk appetite; provide real examples of successful risk appetite initiatives; and give you the necessary tools to report and measure your efforts.
In this session, you’ll learn tactics to help you:
- Develop a framework for setting risk appetite
- Define the role of governance
- Quantify your organization’s risk appetite
- Set up monitoring mechanisms for reporting on risk appetite
TIMESTAMPS OF KEY INSIGHTS:
- 6:00: Overview of the challenges that organizations typically have in setting risk appetite
- 6:44: Defining risk appetite vs. risk appetite statement
- 7:15: What is the difference between risk appetite and risk tolerance?
- 10:54: How to find out how much risk you are willing to accept to achieve your strategic objectives
- 14:09: What is the right balance between how much or how little risk you're willing to accept?
- 15:15: Discover examples of typical risk appetite statements
- 18:05: Understand the role of governance and its importance in establishing risk appetite - a critical piece in the journey to risk management
- 24:27: Discover a framework for risk appetite to help you convert risk management into a more strategic tool
- 27:49: See an example of a climate change risk appetite and best practices for putting a statement like this in place
- 31:02: Understand how to communicate the risk appetite and engage the entire business on how to use it in their day-to-day
- 32:57: What are best practices on integrating and measuring risk appetite?
- 36:53: Learn how KRI's can be used to monitor risk appetite, using an example of reputational risk
- 40:35: Get best practices from industry leaders on what has worked for monitoring risk appetite and the components required to drive good decision-making through the risk appetite
- 42:31: How to enable the business to achieve strategic priorities by understanding what the various initiative are from a risk perspective
- 43:25: What are the benefits of assessing risk appetite?
Audience questions with answers from the panelists:
- 46:06: What is the recommended approach to reviewing risk appetites?
- 47:57: What are the keys to enabling an effective risk appetite?
- 50:18: How many risk appetite statements is typical for organizations?
- 52:19: What are the challenges in transitioning to a principles-based approach of reviewing risk appetite statements?
- 53:43: Working in a large organization, how can I create more collaboration and synergy between 20-30 business units that are currently silo'd, to create a stronger risk mitigation/identification/monitoring framework?
Director of Enterprise Operational Risk, Ontario Teachers’ Pension Plan
Devi Mohan Das
Senior Manager, Risk Consulting, KPMG Canada
Product Marketing Manager, Resolver Inc.