CB Risk Appetite™

CB Risk Appetite™ is a customized solution to assist your bank with developing your bank’s risk appetite, drafting risk appetite statements and selecting the appropriate Key Risk Indicators (KRIs) to effectively monitor your bank’s performance linked to your risk tolerances.   Defining your bank’s Risk Appetite is a critical first step in implementing your ERM process.  Your Risk Appetite (unlike your Risk Profile), communicates your bank’s risk tolerance levels in key risk categories.

Key Features

  • CB Risk Appetite Assessment and Report™: The risk appetite assessment is an online web-based assessment suitable for both management and the Board’s participation.  The assessment outcomes (report) provide a baseline Risk Appetite Model (customizable framework consistent with either FRB Risk Matrix or OCC Risk Assessment model).  The assessment comes with a user’s guide and Risk Appetite Assessment Reference Charts™ which provide quantitative analysis to support accurate assessment responses.
  • Risk Appetite, Statements & KRI’s Presentation: This presentation is designed as a tool to support management’s (and/or the Board’s) ability to establish the bank’s risk appetite, develop its risk appetite statements, and select its Key Risk Indicators.  This process can be self-facilitated or assisted by a CB Resource professional.
  • Key Risks Trends Analysis: Provides quantitative trend analysis (Credit Risk, Interest Rate Risk, Liquidity Risk, & Strategic Risk in order to accurately assess and define your bank’s risk tolerances by risk category.
  • Risk Appetite Summary Report: The summary report is a final document that clearly defines your risk appetite by risk category, cross references your risk appetite statements by risk category and graphically illustrates those Key Risk Indicators (KRIs) that can be charted.
  • An Implementation Guide: Risk Appetite Workbook ● Process Instructions ● Assessment Instructions
  • Support: Professional coach to assist with full implementation of the risk appetite development process

Key Benefits (Why Banks Use This Tool)

  • Comprehensive Outcomes:  Risk Appetite Model illustrated with Heat Map coding ● Risk Appetite Statements aligned to each risk category ● Graphically illustrated KRIs
  • Strategic Plan Integration: Converts the bank’s strategic goals and intent into risk appetite framework
  • ERM Foundation: Provides the foundation of a “top down” ERM implementation process
  • Regulatory Compliance: Positions your bank to meet increased regulator expectations and requirements surrounding risk management.
  • Focus: Helps create a greater understanding of your bank’s risk tolerances and how they relate to your bank’s decision-making.
  • Professional Coach: We serve asa virtual coach to support you through the implementation process.
  • Fast and Affordable: Supports rapid implementation at an attractive price.

For more information or to order your CB Risk Appetite™, please fill out our contact form or contact us directly at (949) 502-6861.