Risk Appetite Framework Development & Implementation- CPD Accredited

The setting of an organisation's risk appetite is a critical component of a robust risk management framework. This intensive risk management training course explores the purpose and balance of risk appetite and risk tolerance within an organisation. Delivered over two days, the course provides a structured approach to defining specific categories of risk and determining the ideal level of risk an organisation should undertake. As regulatory environments become increasingly stringent in many countries, risk appetite and tolerance are emerging as essential business tools. This course addresses these concepts and explains how to implement an effective risk appetite framework within your organisation.

Know Your Risk (KYR) Training & Learning Solutions is a boutique international specialist risk management training organization catering to the training requirements for corporate and institutional clients in the field of risk management. All training programs are tailored and designed by sourcing information and knowledge from global best practices in risk management. Programs being delivered by KYR Training & Learning solutions include two, three, four and five day programs that are delivered either as onsite or via remote learning. Programs on various risk management topics involved Operational Risk, Fraud Risk & Conduct Risk have  been successfully delivered by KYR Training & Learning Solutions to international banking and financial services clients onsite in Dubai, Singapore, Australia and Muscat with further international trainings planned for delivery internationally across multiple locations.

In-depth Understanding of Risk Appetite and Tolerance: Learn how these concepts apply to a variety of risk types.

External Requirements and Guidelines: Gain insights into the external standards and best practices for setting Risk Appetite.

Roles and Responsibilities: Understand who is responsible for developing, setting, and owning the Risk Appetite within an organisation.

Articulating Risk Appetite: Learn how to effectively articulate Risk Appetite for different risk categories.

Determining Risk Appetite: Develop the ability to set an appropriate Risk Appetite for each key risk category.

Risk Assessment Scales: Master the process of defining meaningful likelihood and impact scales aligned with the Risk Appetite approved by the board.

Risk Appetite Documentation: Understand how to document Risk Appetite in a clear and comprehensive Risk Appetite Statement.

Risk Appetite Framework: Explore the nature of a Risk Appetite Framework and how it integrates into the broader risk management framework.

Implementation and Embedding: Learn how to cascade, operationalise, and embed Risk Appetite within the organisation, including the use of key risk indicators.

Board Risk Reporting: Understand how to leverage Risk Appetite as the foundation for effective risk reporting to the Board.

 

What is 'Risk Appetite'? 

What is a Risk Appetite Framework? 

Generic process for setting a Risk Appetite Framework 

Principles for an effective Risk Appetite Framework 

Core elements of a risk appetite framework 

Concept of 'Risk Capacity' 

Risk 'tolerances' and risk 'limits' 

Risk profile 

Ideal reporting structure for risk limits and risk tolerances - 

workshop/team discussion 

Role of risk 'owners'. 

 

11. Sources of Risk for financial institutions in the context of 

developing an effective Risk Appetite Framework 

12. Defining the 'The Risk Appetite Statement' with examples 

13. Key stakeholders in the Risk Appetite Statement 

14. Characteristics of a good Risk Appetite Statement 

15. Overall design considerations of a Risk Appetite Statement 

16. Format of the Risk Appetite Statement 

17. Unit of measurement considerations in the context of a Risk 

Appetite Framework. 

18. Considerations in setting Risk Tolerances with example 

statements 

19. Attributes of Effective Risk limits 

20. Monitoring and breach management of Risk Appetite. 

 

 

Developing a baseline in the formation of a RAS 

Process for defining and maintaining a RAS 

Benefits of embedding a RAS 

Illustrative example of Risk Capacity, Risk appetite, tolerance 

limits and tolerance triggers in practice. 

AFTERNOON SESSION 

Managing risk profile limits - An illustrated example  
Alignment between strategy and risk profile of an Organisation 

Achieving the right balance between strategy and appropriate  risk appetite statements 

Group Activity - Formulating Risk Appetite statements for your 

organisation 

Final remarks - Conclusion - Training Evaluation 

Case studies and exercises are used throughout the course  to reinforce concepts covered 

Participants will develop a draft risk appetite statement to  take away 

This intensive 2 days risk management training course is ideal  for professionals wishing to explore the dynamic between risk  appetite and tolerance and the potential impacts on an  organisation. The course will help professionals design and  implement an effective risk appetite framework in their  organisation. 

Participants will have access to a range of recommended resources through the LMS platform. These resources will provide deeper insights into the topics covered in each module and further enhance their understanding of Islamic finance and capital markets.