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