Understanding Risk Appetite - a Critical Component of Exposure Management
Risk is inherent in any business. It’s how an organization understands and manages it that makes all the difference. From operational challenges to market volatility, regulatory changes and technological advancements, companies face a spectrum of uncertainties that could either generate growth or lead to losses. To effectively manage them, a business needs to set out a framework that helps it determine just how much risk it’s willing to accept in pursuit of its objectives.