Duration 1 day – 7 hrs
Overview
This session is designed as a guided, facilitator-led executive discussion rather than a traditional training program. The objective is to provide the Management Committee with a structured forum to align perspectives, surface key risk considerations, and collectively shape the organization’s Risk Appetite framework in support of strategic and operational decision-making.
The facilitators from the Risk Management Division will guide discussions using targeted questions, practical scenarios, and decision prompts, ensuring active participation and meaningful executive input. The session emphasizes clarity, alignment, and governance, while allowing Management Committee members to share insights based on their functional responsibilities and risk ownership.
Objectives
Establish a Common Understanding
- Align Management Committee members on the purpose, value, and role of Risk Appetite in governance and strategic decision-making.
Clarify Management’s Risk Boundaries
- Identify acceptable and unacceptable risk levels across key risk areas (e.g., credit, liquidity, operational, compliance, strategic).
Link Risk Appetite to Strategy and Operations
- Discuss how risk appetite should influence growth targets, investment decisions, liquidity buffers, and operational limits.
Surface Key Risk Trade-Offs
- Facilitate open dialogue on risk-return considerations and areas where management judgment is most critical.
Provide Inputs for a Formal Risk Appetite Statement
- Capture executive insights, themes, and directional guidance that can be translated by the Risk Management Division into a draft or refined Risk Appetite Statement.
Audience
- Management Committee Members
- Facilitators (Risk Management Division)
Pre – requisites
- Participants should be members of the Management Committee or senior leaders involved in strategic and risk-related decision-making.
- Basic familiarity with the institution’s risk profile, strategic objectives, and existing risk management framework is recommended.
- No prior technical risk training is required, as the session is designed as a facilitated executive discussion.
Course Content
Suggested High-Level Discussion Structure
Context Setting
- Purpose of the session
- Role of Management Committee in risk appetite governance
- How today’s discussion feeds into formal policies and Board oversight
Strategic Direction & Risk Philosophy
- What risks are necessary to achieve strategic objectives?
- What risks must be strictly limited or avoided?
- Lessons from recent internal or industry risk events
Key Risk Areas Discussion
Facilitated discussion per major risk category:
- Credit Risk
- Liquidity & Funding Risk
- Operational Risk
- Compliance & Regulatory Risk
- Strategic & Reputational Risk
Guiding questions:
- Where is management comfortable taking risk?
- What are the red lines?
- What early warning indicators matter most?
Risk Appetite in Decision-Making
- How risk appetite should guide approvals, exceptions, and escalation
- Practical scenarios and “what-if” discussions
- Alignment between business units and risk oversight
Synthesis & Next Steps
- Summary of key themes and agreements
- Identified gaps or areas needing further analysis
- Next steps for Risk Management Division (documentation, validation, Board presentation)
Facilitator’s Role (Key Success Factor)
- Keep discussions focused and time-bound
- Encourage balanced participation from all executives
- Translate qualitative insights into structured risk themes
- Document key agreements, concerns, and act
Expected Outputs (Post-Session)
- Consolidated executive inputs on risk appetite
- Clear management direction on acceptable risk levels
- Action items for drafting or enhancing the Risk Appetite Statement
- Stronger alignment between management, risk, and governance functions
