Research into the Definition & Application of the concept of risk appetite

Risk appetite can be considered as one of the building blocks of an effective risk management initiative. However, there is still considerable debate over the exact meaning of risk appetite, the way in which an organisation should develop a risk appetite statement and how the concept should be applied across an organisation.

This report presents the findings of research undertaken by Marsh Risk Consulting and the University of Nottingham into the definition and application of risk appetite and was coordinated by the Risk Management Steering Group at AIRMIC. It is an important piece of original research work that represents a substantial commitment, both by Marsh and by the University of Nottingham who have proved to be very valuable partners in this exercise and have put substantial resources into undertaking this work.