The risk appetite modelling is the most important element of any risk management framework, regardless of industry or location since it enables management to articulate their control environment. As they are willing to take more risk, they can increase the risk appetite. If they wish to take less risk, they will reduce their risk appetite.
However, to be able to do this in any consistent basis will require the development of a consistent risk register. While this is easy to state, in practice, it has been hard to implement. In this chapter, we will look at why this has been a problem and the solutions.
What Is a Risk Register?
A risk register is certainly not a regulatory construct. Rather, it is one of the key tools used ...