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VIRTUAL: fastTrack - Defining corporate risk appetite to drive culture

30th March 2023 11:00 – 12:00

Please register here for this live-streamed session.

This session aims to explore the structure, value and implementation of corporate risk appetite and understand how it can be leveraged to drive risk culture. In today's volatile and unpredictable business environment, managing risk has become a critical challenge for organizations of all sizes and across all industries. As organizations strive to achieve their strategic objectives and maintain their competitive position, they inevitably face a multitude of complex and inter-related risks. The ability to effectively manage these risks is essential for long-term success and sustainability.

To achieve this, it is essential for organizations to have implement a well-defined and clearly communicated risk appetite. At a high level, risk appetite refers to the level and type of risk that an organization is willing to accept form a controlled and informed basis in pursuit of its objectives. It is a critical component of an organization's risk management framework as it helps to facilitate consistent, effective, and risk-based decision-making as well as help define strategy.

In this session, we will explore the structure and benefits of corporate risk appetite using good practice examples, and how it can drive risk culture within an organization. We will discuss why a clear and well-defined risk appetite is essential for effective risk management, and how it can help to establish a strong risk culture that promotes risk awareness, accountability, and transparency. Finally, we will also look at real-world examples of organizations that have successfully implemented a risk appetite framework and the benefits they have seen in terms of improved risk management and overall business performance.

By the end of the session, you will be able to:
Identify the overall purpose of a ‘fit for purpose’ risk appetite statements as a corporate risk management mechanism
State the key components that make up a risk appetite statement using good practice and identify the role of each of these components
Explain the role that risk appetite statements have in establishing an effective risk culture across and organisation
Identify the common weaknesses and challenges that are often observed across the design and implementation of risk appetite statements
Explain how the risk appetite statement can be used as a mechanism to communicate effective enterprise risk management to stakeholders

Tom Teixeira, Partner, Head of Risk & Resilience Practice – ADL
Deborah O'Riordan, Practice Leader, Risk Solutions Financial Lines – QBE Insurance
Dominic Thompson, Senior Consultant – ADL