Risk Appetite Frameworks: Evolving Practices

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 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 globally participated in the study, including 50 banks, six development banks, and one insurance company;  more than half have a total balance sheet size above US$ 500 Billion.

2020 – Detailed Survey Results (for IACPM members only)

2020 – White Paper

2014 – White Paper