One of the first questions to ask a client when starting a risk journey with them is to ask what their Risk Appetite is. Sometimes this is an organisational question and sometimes it is a system based one. But always it is a problem.
These appetites are usually six or so discrete statements which fit onto an intuitive scale. Yeah, right.
Recently a client showed me their risk appetite statements and the thing that immediately stood out was that they had one of the appetites at ‘minimal’ and yet it was not the lowest possible setting. I must admit, I wasn’t expecting to hit a Rule 1 violation with a single word statement, and so the pointlessness of the scale gave us comedy gold.
So, the Risk Appetite Generator was born. As with many of my generators, you can add ?help to find out what settings you can muck about with.
Before you ask, the risk appetites of that client are in the generator.
