Risk Appetite Framework for Insurance

Implementing a Risk Appetite Framework entails setting limits on all key risks, regular monitoring of the entity’s risk profile and taking remediation actions in case of breaches. To set the limits consistently across all risks and sub-risks, a top-down approach is typically used, broadly consisting of 2 steps: Defining Risk Appetite Statements and Translating these statements into risk limits across all risks. When risk limits are breached, the entity should define remediation plans. Finalyse has the capacity and expertise to work in co-creation mode to define and implement a Risk Appetite Framework, which will rely on risk limits understood and applied by the 1st and 2nd lines of defence consistently. Such framework will be effectively integrated in your value chain.