Risk appetite framework: implementation and management

• Which risks are you willing to accept, and to which extent, in the pursuit of your business objectives?

Clearly defining boundaries for a company's risk profile and thus formalising the risk appetite of directors and senior managers is crucial in order to objectively balance business and risk priorities. Thus, establishing an effective risk appetite framework helps to reinforce a strong risk culture which in turn is critical to sound risk management.

This has also been recognised by regulators, who require financial institutions to have appropriate risk appetite frameworks in place.
This course will enable participants to:

• understand the purpose and regulatory background of a risk appetite framework
• understand how to establish a risk appetite framework that covers the full range of risks facing their company in line with best practices
• understand how to establish a governance of risk appetite

• Purpose of a risk appetite framework; regulatory background
• Elements of a risk appetite framework; the role of a risk appetite framework in bank management
• Formulating qualitative and quantitative risk appetite for financial and non-financial risks
• Governance of risk appetite
• Case studies

This training is coordinated by Jean-Philippe Maes, Partner at PwC Luxembourg and Elena Kazmina, Director at PwC Luxembourg.

Jean-Philippe Maes is a partner with over 15 years of expertise in Basel III, regulatory reporting, risk management, and internal governance, including Basel IV preparation. He has supported banks, investment firms, and management companies in implementing regulatory frameworks and managing risks from operational to internal models, including COREP/FINREP reporting. Recently, his focus has been on risk appetite frameworks and non-financial risks such as climate, conduct, and reputational risks. Jean-Philippe has led significant projects like designing recovery plans, conducting governance reviews, and training over 600 bankers. He is also a frequent speaker and represents PwC at Luxembourg’s Banks and Bankers’ Association Banking Supervision Committee.

Elena Kazmina is a director in the regulatory compliance advisory team at PwC Luxembourg with over 10 years of professional experience. She specialises in supporting multilateral development banks, Luxembourg-based credit institutions, investment firms, and management companies in strengthening internal governance, risk management, and compliance with regulatory frameworks such as Basel guidelines, EU regulations, EBA guidelines, and Luxembourg-specific laws. Elena holds certifications from ACCA and GARP in Climate Risk. Her expertise includes Basel III/IV, enterprise risk management, risk appetite frameworks, regulatory reporting, and credit rating methodologies. She has led strategic capital optimisation, risk appetite enhancement, financial product assessments, IFRS 9 audits, and M&A due diligence projects.