During Spring 2020, at the height of the COVID-19 pandemic, the IACPM revisited a benchmarking study on Risk Appetite Frameworks (RAF) last conducted in 2014. The 2014 study can be accessed here>.
The survey explored evolving practices across the industry in light of emerging risks such as Cyber, ESG and especially Climate Risk and other risk management priorities.
- Challenges in developing Risk Appetite Frameworks
- Granularity and internal cascading
- Utilization of stress testing scenarios
- Metrics and limits – including new metrics for ESG and Climate Risk
- Governance and Risk Culture
57 IACPM member firms participated in the study, including 50 banks, six Development Bank, and one Insurance Company; more than half have a total balance sheet size above USD 500 Billion.
Detailed results will be shared with participating IACPM member firms once they have been finalized.