The biggest risk is not taking any risks. Sometimes to get things done you simply have to take risks.
But here’s the thing: which risks are worth it, and which should you avoid? Why do you choose certain risks and how do you decide where your limit lies? These are questions to be considered when formulating your risk appetite.
Risk appetite defines your organisation’s risk comfort level. How much risk are you willing to handle to achieve your goals? What risk level can your organisation bear (risk capacity)? How much risk are you willing to tolerate (risk tolerance)?
Your risk appetite will depend on internal standards/values, supervisory rules and regulations and what stakeholders will accept.
A statement detailing your organisation’s risk appetite is important to manage internal and external expectations and to support your strategic planning.
We work with clients to help them define their risk appetite. We achieve this by establishing a relationship between the objectives, the risks, and the extent to which an organisation is willing to take risks. We encourage them to take a consistent approach to risks.
We create clear boundaries and guidelines for this risk appetite, to help personnel to match their actions to an acceptable level of risk.
Tackling risk management doesn’t have to feel like solving a complicated puzzle. We believe that using our Ruler software, you’ll find it surprisingly simple. Ruler’s legal framework gives you an overview of the standards your organisation must adhere to and keeps you updated about regulatory developments. So, no more unwanted surprises – you remain in control.