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 your risk profile and thus formalising the risk appetite of your 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 Lorenz von Below, Senior Manager at PwC Luxembourg.

Lorenz von Below is a senior manager in PwC Luxembourg’s risk management practice for the banking sector with over nine years of experience in consulting financial services providers of varying sizes and business models and with an academic background in mathematics.

His primary areas of work lie at the intersection of capital management, risk management and risk modelling, as well as the corresponding regulatory requirements He has extensive experience advising clients on risk strategy, risk appetite, and risk management as well as on quantitative finance and valuation gained at numerous institutions in Europe and beyond,

including several European and Asian globally systemically important banks as well as several multilateral development banks. He holds a PhD in mathematics and a Certificate in Quantitative Finance (CQF).