Implementing Robust Risk Appetite Frameworks to Strengthen Financial Institutions (FRM P2–B3–Ch4)
For FRM (Part I & Part II) video lessons, study notes, question banks, mock exams, and formula sheets covering all chapters of the FRM syllabus, click on the following link: https://analystprep.com/shop/unlimite...
AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams
After completing this reading, you should be able to:
Describe best practices for the implementation and communication of a risk appetite framework at a firm.
Explain the relationship between a firm’s risk appetite framework and its risk culture, and between the risk appetite framework and a firm’s strategy and business planning process.
Explain key challenges to the implementation of a risk appetite framework and describe ways that a firm can overcome each challenge.
Assess the role of stress testing within a risk appetite framework, and describe challenges in aggregating firm-wide risk exposures.
Explain the lessons learned in the implementation of a risk appetite framework through the presented case studies.
