Introduction
Enterprise Risk Management (ERM) is a key function in organisations seeking to manage uncertainty and its impact on the achievement of objectives.
The amount of risk an organisation seeks or accepts, deliberately or by default, can critically influence the outcome of uncertainty, positively or negatively.
Risk appetite is an essential component of an effective ERM framework.
At Board level, risk appetite is a driver of strategic risk decisions, specifically those related to growth, innovation, transformation and change.
At executive level, risk appetite translates into a set of procedures to ensure that risk receives adequate attention when making tactical decisions. At operational level, risk appetite establishes operational parameters for routine activities.
The objective of the survey is to provide organisations with a gauge of the current state of their risk appetite framework, and guide areas for further development.
The results of this survey are intended to raise and inform discussion amongst Boards.