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 is a partner in PwC's Regulatory Compliance services. He leads the firm’s banking and PFS risk Advisory team and is the lead advisor for CRD/CRR topics.

He has over 15 years of experience in Basel III areas and has helped many banks, investment firms and management companies to implement Basel III and prepare for Basel IV. He has worked in most dimensions of risk management, from operational risk to internal models, encompassing reporting aspects (such as COREP/FINREP) and governance matters.

Lately, Jean-Philippe has been focusing on risk appetite frameworks and the management of non-financial risks such as climate, conduct or reputational risks.

Elena is a director in the Regulatory Compliance Advisory team at PwC Luxembourg. Over the past years, Elena has worked closely with multilateral development banks and Luxembourg-based credit institutions, investment firms, and management companies, supporting them in ensuring robust internal governance and, in particular, risk management practices. This includes compliance with applicable regulatory and legislative frameworks, encompassing Basel guidelines, EU-level regulations and directives, EBA guidelines, Luxembourg-specific laws, and CSSF circulars.

She holds certification from the Association of Chartered Certified Accountants (ACCA) and a Climate Risk Certificate from Global Association of Risk Professionals (GARP).