Tags » Risk Appetite

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

What are Risk Attitudes?

Both people and organizations (or companies) have their ways in how they perceive risk and how they deal with it – they have specific risk attitudes. 457 more words

Project Management

The Dose Makes the Poison

My latest @ISACA article posted today. I was really pleased with this one as it uses an easily understandable metaphor to call out the often experienced desire of people to live life without risk (as evidenced by statements such as “We don’t accept any risk…”). 11 more words


Do You Know Your Risk Appetite?

Do you Know Your Risk Appetite?

As part of the development of a comprehensive compliance management program, there are specific roles for senior management and another set of roles for the Board of Directors.  1,136 more words