Tags » Risk Appetite

Why Should Small Financial Institutions Perform Compliance Risk Assessments?   

The concept of risk assessments is often associated with large banks and financial institutions – but it shouldn’t be.  Oftentimes, the ugly truth about risk assessments is that they are prepared specifically to meet a regulatory requirement and not much more.   1,595 more words

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