Risk appetite definition

Risk appetite means the aggregate level and types of risk the institution is willing to assume within its risk capacity, in line with its business model, to achieve its strategic objectives.
Risk appetite means the total of the exposure level and types of the obliged entity, which the obliged entity is prepared to assume for the purpose of its economic activities and attainment of its strategic goals, and which is established by the senior management of the obliged entity in writing.
Risk appetite means the level of risk a firm is prepared to accept.

Examples of Risk appetite in a sentence

  • Risk appetite is a measure of how much risk the Trustee is willing to bear within the Scheme in order to meet its investment objectives.

  • This quantitative approach is based on our proprietary VLRT framework, wherein we incorporate the full spectrum of data along deeper aspects related to the three axis of Valuation, Liquidity, and Risk appetite and view it in a dynamic setting – Time, thus, forming the multi-dimensional VLRT framework.

  • Risk appetite is expressed in both quantitative and qualitative terms and covers all risks, both on-balance sheet and off-balance sheet.

  • Risk appetite is set in conjunction with the annual strategy and business planning process to ensure appropriate alignment between strategy, growth aspirations, operating plans, capital and risk.

  • Risk appetite is generally expressed through both quantitative and qualitative means and should consider extreme conditions, events and outcomes.


More Definitions of Risk appetite

Risk appetite means the aggregate level of risk that the bank is willing to take to achieve its long-term goals, as well as the types of risks it is willing to take within its risk capacity.
Risk appetite means the level and types of risk a credit institution is willing to assume within its defined risk capacity to achieve its strategic objectives;
Risk appetite means the total of the exposure level and types of the obliged entity, which the obliged entity is prepared to assume for the purpose of its economic activities and attainment of its strategic goals, and which is established by the senior management of the obliged entity in writing. The management board of the Company also determines whether business relationships will be established with persons from a country outside the European Economic Area or with e-residents.
Risk appetite means the aggregate level and types of risk the board of directors and management are willing to assume to achieve a covered bank’s strategic objectives and business plan, consistent with applicable capital, liquidity, and other regulatory re- quirements.
Risk appetite means the level and type of risk an institution is able and willing to assume in its exposures and business activities given its business objectives and obligations to stakeholders;
Risk appetite means the aggregate level and types of risk a licensed insurer, reinsurer or HMO is willing to assume within its risk capacity to achieve its strategic objectives and business plan;
Risk appetite means the total level and type of risk exposure that an insurer is willing to undertake to achieve its objectives;