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A Short Guide to Risk Appetite David Hillson

A Short Guide to Risk Appetite By David Hillson

A Short Guide to Risk Appetite by David Hillson


Summary

Risk appetite is a hot topic, driven both by corporate governance requirements and senior managers' need to make risk-based decisions. But despite the high level of interest, there is no consensus on what risk appetite is, how it should be expressed or measured, or how it can be practically used in business or projects.

A Short Guide to Risk Appetite Summary

A Short Guide to Risk Appetite by David Hillson

How much risk should we take? A Short Guide to Risk Appetite sets out to help all those who need to decide how much risk can be taken in a particular risky and important situation. David Hillson and Ruth Murray-Webster introduce the RARA Model to explain the complementary and central roles of Risk Appetite and Risk Attitude, and along the way they show how other risk-related concepts fit in. Risk thresholds are the external expression of inherent risk appetite, and the challenge is how to set the right thresholds. By progressively deconstructing the RARA Model, the authors show that the essential control step is our ability to choose an appropriate risk attitude. The book contains practical guidance to setting risk thresholds that take proper account of the influences of organisational risk culture and the individual risk preferences of key stakeholders. Alongside this, individuals and organisations need to choose the risk attitude that will optimise their chances of achieving the desired objectives.

A Short Guide to Risk Appetite Reviews

'...while many organisations, across various industries, are talking about risk appetite, the majority are struggling to define and measure it. This short but comprehensive guide provides a practical approach to do just that...In a nutshell, the book successfully delivers an insight into risk appetite, how to measure it and, above all, how to implement the RARA model and use it in key decision-making. The best part? Human factors are well catered for (risk culture, decision-making and risk leadership). In conclusion, this is an interesting insight for risk management academicians and a must-read for practitioners to take the subject forward.' Monika Narula, Risk Management Professional '...this is another intriguing title from Gower's Short Guides to Business Risk series and it's clear the authors are well versed on the subject in hand. Risk appetite is a complex subject and Hillson and Murray-Webster tackle it well with useful definitions from regulators, standards, professional associations and reputable consultants.' Quality World, March 2014

About David Hillson

David Hillson is a recognised global authority on risk management, with a reputation and track record of blending leading-edge thinking with practical expert application. David is a frequent author and speaker on risk.

Table of Contents

Contents: Foreword; Preface; Why is risk appetite important?; The risk appetite story so far; Terminology wars; Putting the pieces together: the RARA model; Applying the RARA model: making risk-informed decisions; Practical implications: what can we measure?; Using the RARA model in practice; Conclusions; Index.

Additional information

GOR013588733
9781409440949
140944094X
A Short Guide to Risk Appetite by David Hillson
Used - Like New
Paperback
Taylor & Francis Ltd
2012-11-28
168
N/A
Book picture is for illustrative purposes only, actual binding, cover or edition may vary.
The book has been read, but looks new. The book cover has no visible wear, and the dust jacket is included if applicable. No missing or damaged pages, no tears, possible very minimal creasing, no underlining or highlighting of text, and no writing in the margins

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