• Service: Audit, Audit Related Services, Audit Committee Institute, Advisory, Risk Consulting, Board Advisory Services, Financial Risk Management, Internal Audit, Risk & Control Services, Climate Change & Sustainability Services, Actuaries, Topics, Managing Risk & Complexity
  • Type: White paper
  • Date: 10/10/2011

Using risk appetite to drive value 

Given the ongoing volatility and uncertainty in the economy, organisations are thinking about ‘risk appetite’.
Using risk appetite to drive value
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KPMG’s Risk Consulting practice has developed a paper to help clients learn how to incorporate their attitudes to risk taking into their day-to-day operations.

A risk appetite statement (RAS) is an element in a broader strategy designed to avoid unpleasant surprises and manage the risk and uncertainty that underlies all business activity.


Boards, Audit Committees and Chief Risk Officers may find this paper acts as a valuable tool for when reviewing and developing their risk appetite statements.


A well articulated risk appetite statement can:

  • help resolve tensions in the business plan
  • communicate the board’s vision in practical terms
  • uncover opportunities and weaknesses that might otherwise have remained hidden
  • quantify risks in terms of the type and level of risk that an organisation is prepared to accept.