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.