Practical Risk Appetite and Risk Tolerance

Course Overview

Risk appetite defines the boundaries of risk an organisation accepts when setting targets and making business decisions. It has a crucial role in effective risk management, but is a complex area which involves balancing competing interests. IRM's two-day training explores the amount of risk your organisation is willing to seek or accept to achieve its objectives. We give you the theory behind risk appetite thinking and the hands-on skills and practical knowledge to build an effective risk appetite framework to benefit your own organisation. You will learn precisely how to analyse risk appetite and the tools to implement this key aspect of risk management in your role.

Who should take this course

• Organisation leaders & managers who want to understand how a positive approach to risk adds value
• Risk managers who are charged with risk framework implementation
• Auditors who have responsibility to provide assurance to the organisation on risk management
• Board members who set risk appetite and tone from the top in their organisation

Key learning objectives

• Explain the difference between risk appetite, risk tolerance and thresholds
• Develop a risk appetite framework and supporting governance processes
• Develop risk appetite metrics and trigger levels for action
• Customise and use risk appetite within your organisations ERM framework
• Establish Key Risk and control indicators based on the risk appetite metrics
• Gain board and executive level buy-in for formalising the organisations risk appetite