Risk Appetite Revisited
While most insurers have, by now, developed risk appetite policy statements and discussed them with their boards, many have expressed dissatisfaction with the exercise. In particular, some are questioning whether they are getting good value from the investment of the time and senior management ‘band-width’ devoted to the topic. The main issue appears to be insufficient linkage to the business, in terms of business planning and performance management. (One CEO described their risk appetite statement as ‘high-quality, but somewhat sterile’.)
This session presents our latest thinking on risk appetite for insurers, focusing on ways to make it a more effective and valuable process.
*Awarded ERM/Financial Track Prize