Home > Uncategorized > New IRM paper, Risk Appetite and Risk Tolerance

New IRM paper, Risk Appetite and Risk Tolerance

The following is a link to the Institute of Risk Management’s new paper (May 2011) Risk Appetite and Risk Tolerance, http://www.theirm.org/publications/documents/IRM_Risk_Appetite_Consultation_Paper_Final_Web.pdf.

The paper was written to provide guidance to directors, risk professionals and other people who advise boards on compliance with the part of the UK Corporate Governance Code that states that “the board is responsible for determining the nature and extent of significant risks it is willing to take in achieving its strategic objectives.”  Of course, whether or not required by statute, it has also become accepted practice that the board of directors of a public company in the United States also will exercise oversight of risk management strategy, and New York Stock Exchange List Company Manual Sec. 303A.07 states in pertinent part that the audit committee shall discuss policies with respect to risk assessment and risk management including the guidelines and polices to govern the process by which it is done.

Advertisements
Categories: Uncategorized
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s