Demystifying Risk Appetite and Tolerance
23 October 2014
Attending this Risk Appetite and Tolerance Training will provide delegates with a broader view of Risk Appetite and Tolerance (RAT), the development of a RAT framework and the practical implementation of RAT within their organisation.
The ISO 31000:2009 definition of Risk Appetite shows that it is concerned with the kinds of risk an organisation prefers to take as well as the level to which it wants to expose itself. For many organisations, some of the largest risks they face relate directly to their major sources of income and taking these risks underpins their business model. Risk Tolerance then relates to an organisation’s willingness to tolerate or retain risk after risk treatment has taken place.
Efforts to quantify Risk Appetite and Tolerance can sometimes produce an illusion of precision and often leads to great misconceptions. This training will provide an overview of Risk Appetite and Tolerance and instil practical, hands on understanding of their application within an organisation. The training will provide learners with a practical opportunity to develop RAT levels based on a generic model to enhance their understanding.
Who should attend?
Chief Risk Officers, Risk Managers, Risk Champions, Business Executives and managers who want to improve their risk management capability.
About the presenter
Vanessa Thurlwell (BA Hons) has 11 years of experience in Risk Management, primarily Enterprise Risk Management and Business Continuity Management graduated in 2000 with a BA in Geography and Psychology and Honours in Environmental Management from UKZN. Vanessa has held positions in Health, Safety and Environmental Management for BHP Billiton, Strategic Risk Consulting for Alexander Forbes and headed ERM and ORM at IQ Business.
Vanessa has worked in many industries including mining, manufacturing, construction, retail, banking and insurance in various Southern African countries, Mauritius and Australia. Vanessa’s specialist skills include advisory and implementation at all phases of the risk management cycle, from analysing risk management maturity and conducting gap analyses against risk frameworks and regulations including King III, ISO 31000, developing risk appetite and risk management frameworks, facilitating risk management activities including risk assessments, reporting, control assessments and conducting training at all levels in an organisation.
One-day course agenda
Demystifying Risk Appetite and Tolerance (RAT) (1 Day)
Part 1: An Introduction to RAT
· Overview and defining RAT
· Common misconceptions
· Why RAT?
Part 2: RAT Policy / Framework
· Content and purpose
· Developing a RAT Policy / Framework
· Setting RAT levels
· RAT Reporting
Part 3: RAT in practice
· RAT in decision making
· Variances to risk parameters
· Continual review and monitoring
o Risk register review
o Managing change (internally and externally)
· Awareness and training
Part 4: Practical exercise
· Developing RAT levels as per a generic risk matrix
· Risk measurement against RAT levels
· RAT Reporting – plotting risk profiles