Sample Risk Appetite Statements and Metrics
In brief: Developed from risk management thought leader James Lam’s book Enterprise Risk Management: From Incentives to Controls, Second Edition, this tool provides examples of risk appetite statements, performance and risk metrics, and risk-tolerance levels for the enterprise-wide risk management category.
This resource can help your board
- Provide oversight for the development of the risk appetite statement
- Incorporate appropriate metrics and set risk-tolerance levels
- Improve the quality of risk-related communication between management and the board
Most relevant audiences: audit committee members, risk committee members, and chief risk officers