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Risk Appetite Statement

What is Risk Appetite Statement?

A formal document expressing the board-approved levels and types of risk an organization is willing to accept in pursuit of its objectives.

Governance

Each of these is named in at least one of the same controls as risk appetite statement. The number is how many controls name both.

What the standards actually require on risk appetite statement

Requirements naming risk appetite statement across 6 standards, quoted from the control text.

The institution must maintain an appropriate, clear and concise risk appetite statement addressing its material risks, with the Board responsible for setting risk appetite and required to approve the statement.

CPS220-06 · Risk Appetite Statement

Maintain Risk Appetite Statement + Risk Limits + Concentration Risk Management + Limit Breach Protocols per 12 CFR Part 30 Appendix D Sections II.E + II.F + II.G + II.H + II.I + II.K.

OCCHS-3 · Risk Appetite Statement, Risk Limits, Concentration Risk, and Limit Breach Protocols

The RSE licensee must maintain an up to date risk appetite statement covering its business operations and each category of material risk, approved by the Board.

SPS220-19 · Risk Appetite Statement

The Jamaica Data Protection Act 2020 establishes a comprehensive penalty regime spanning criminal + civil + and administrative penalties. (1) Section 50 Administrative Penalties: (a) imposed by Commissioner; (b) UP TO JMD 10 MILLION per violation;

JM-DPA2020-Penalty-Risk-Sec31-33-50-52-Criminal-Civil-Administrative-Up-to-10M-JMD-Compensation-Imprisonment · Jamaica DPA 2020 Penalty Risk Management + Sections 31-33 + 50 + 52 + Criminal Offences + Civil Compensation + Administrative Penalties + Up to JMD 10 Million + Imprisonment + Director/Officer Liability + Reasonable Care Defence

Questions people ask about risk appetite statement

What is Risk Appetite Statement?
A formal document expressing the board-approved levels and types of risk an organization is willing to accept in pursuit of its objectives.
Why is Risk Appetite Statement important for compliance?
Risk Appetite Statement is a key concept in Governance. Understanding risk appetite statement helps organizations meet regulatory requirements, reduce risk, and demonstrate due diligence during audits. Our compliance platform maps 686 frameworks with 311K cross-framework control mappings.
Which compliance frameworks address Risk Appetite Statement?
Risk Appetite Statement appears in the requirement text of APRA CPS 220 Risk Management, OCC Heightened Standards (12 CFR Part 30, Appendix D), APRA SPS 220 Risk Management (Superannuation), IRM Enterprise Risk Management Framework (Institute of Risk Management), Jamaica Data Protection Act 2020. Across these standards we have identified 18 controls that name it directly, each linked to the control text on the compliance platform.
Where can I learn more about Risk Appetite Statement?
Explore our compliance framework pages to see how risk appetite statement applies across different standards and regulations. Our implementation guides provide step-by-step guidance, and the compliance platform offers AI-powered analysis of how this concept maps across 686 frameworks.

See how Risk Appetite Statement applies across compliance frameworks

Our platform maps 686 frameworks with 311K cross-framework control mappings. Explore how this concept is addressed across standards.

Written and maintained by Gerard Blokdyk, The Art of Service.