Episode 8: Establishing an Appropriate Risk Appetite

In the latest episode of the SRA Risk Intel Podcast, host Ed Vincent engages in a dynamic discussion with Niki White, Chief Customer Officer of SRA, focusing on the significance of risk maturity and the implementation of a proven framework. Niki brings a wealth of experience as a former Chief Risk Officer and audit leader in the banking industry.

The episode delves into the critical topic of risk appetite, with Niki emphasizing the importance of moving beyond qualitative narrative statements. She advocates for incorporating key metrics that align risk assessments with the organization's strategic objectives. By establishing a strong linkage between risk and strategy, organizations can bridge the gap between their desired behavior and their actual risk appetite.

Niki highlights the pivotal role of the Board in setting, evaluating, and agreeing upon the Bank's risk appetite. Management plays a crucial role in establishing and reporting key metrics that enable the Board to exercise appropriate governance over the institution. Clear communication and alignment between policies, strategic plans, and risk appetite are essential for comprehensive risk management.

Throughout the conversation, Niki shares insights into common pitfalls and best practices for developing a robust risk appetite statement. She stresses the importance of involving key stakeholders in its development and ensuring adoption across the management team.

"Avoiding conflicts with policies and maintaining an integrated reporting process are essential for a holistic view of risk." - Niki White, Chief Customer Officer

The episode concludes with a reminder of the interconnected nature of risk management. A cohesive approach that aligns risk appetite, policy limits, and strategic plans empowers the board to make informed decisions and see the full picture of the organization's risk landscape.

Listeners gain valuable insights from Niki's expertise and practical recommendations, enabling them to enhance their risk management practices and drive success in their organizations.

Don't miss this enlightening episode of the SRA Risk Intel Podcast! Listen or watch the video below to gain a deeper understanding of risk maturity and the implementation of a proven framework.