Risk policy: Difference between revisions

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''Risk management''
''Risk management.''
   
   
Predetermined actions the entity will take, or have in reserve, to deal with the various situations that might arise.   
Risk policy is the documentation of an organisation's risk tolerance, risk appetite and risk budget.
 
It includes predetermined actions the organisation will take, or have in reserve, to deal with the range of future situations that might arise.   




Risk policy should cover commercial as well as treasury approaches to exposure management.  
Risk policy should cover commercial as well as treasury approaches to exposure management.  


The policy should identify and reflect the risk appetite and risk tolerances of the organisation, making explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.  
The policy should make explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.  




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== See also ==
== See also ==
* [[Enterprise risk management]]
* [[Guide to risk management]]
* [[Exposure]]
* [[Exposure]]
* [[Risk appetite]]
* [[Risk appetite]]
* [[Risk budget]]
* [[Risk control]]
* [[Risk control]]
* [[Risk tolerance]]
* [[Risk tolerance]]
* [[Senior Managers Regime]]
* [[Senior Managers Regime]]
* [[Guide to risk management]]


[[Category:Financial_risk_management]]
[[Category:Financial_risk_management]]

Revision as of 11:54, 2 April 2019

Risk management.

Risk policy is the documentation of an organisation's risk tolerance, risk appetite and risk budget.

It includes predetermined actions the organisation will take, or have in reserve, to deal with the range of future situations that might arise.


Risk policy should cover commercial as well as treasury approaches to exposure management.

The policy should make explicit that a risk management system has been designed to provide reasonable assurance of achieving business objectives.


It should assign accountability for managing risks and reporting results on effectiveness of the system to executive management.


See also