Volume 3 – CECL and Firm Wide Risk Appetite

Volume 3 - CECL and Firm Wide Risk AppetiteVolume 3 - CECL and Firm Wide Risk Appetite

The key to this topic is understanding exactly what is meant by a risk appetite. One way to think about this topic is to consider the Basel committee guidance on "Risk Appetite". BCBS294 is a set of guidelines around the principles for corporate governance, published in its final form in July 2015. Within this document, there are three chapters covering Risk management and identification. These are some of the clearest official guidance notes published on risk appetite and high level risk management.