Tags » Risk Appetite

The whole concept of risk-appetite is total nonsense

The concept of risk-appetite has been around for years, yet so many risk practicioners still find themselves confused and unsure how to quantify, formalise and document it. 581 more words

Risk Management

Not taking risk is the riskiest proposal

The question is not whether to take risk, but how much and no more!

And that amount is a function of your appetite.

The world has become so interesting because many of our ancestors decided to do things that were ‘risky’, or even outright outrageously ‘improbable’ and ‘uncertain’! 9 more words

Let your Profits run and cut your Losses short

In one classic experiment conducted by Daniel Kahneman and Amos Tversky, pioneers in the field of prospect theory, subjects were given a hypothetical choice between a sure $3,000 gain versus an 80% chance of a $4,000 gain and a 20% chance of not getting anything. 193 more words

Behavioral Finance

The Evolution of Risk Reporting

by Cory Gunderson, Managing Director
Global Leader, Financial Services Industry

One of the key questions financial services firms ask every morning is, “Am I riskier today than I was yesterday?” Institutions need to know whether their risk profile has changed, and why. 465 more words

Regulatory Compliance

Real-World Risk Rigors Require Effective Challenge

By Matt Perconte, Director
Risk and Compliance Practice

Man plans, God laughs, according to the Yiddish proverb. Bank regulators, not so much – at least not when it comes to risk management, which continues to be an ever-moving target for financial institutions. 486 more words

Internal Audit

Risk Trajectory - Do you know which way your risk is headed?

Which direction are you planning on taking?

  • Are you expecting your risk to grow faster than your capacity to bare risk?
  • Are you expecting your risk capacity to grow faster than your risk?
  • 376 more words
Enterprise Risk Management