Risk governance of financial institutions: The growing importance of risk appetite and culture
Abstract
Risk governance is increasingly a core responsibility of board members of financial institutions. While each firm may adopt its own specific approach, key elements of risk governance include board-level risk committees, empowered chief risk officers, the use of risk appetite statements, and establishing a robust risk culture. This paper scopes these developments and highlights the growing importance of risk appetite statements and culture as two increasingly prominent elements of risk governance.
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Author's Biography
Walter Gontarek is a researcher at the Cranfield School of Management, focusing on risk governance, and is also CEO of Channel Capital Advisors, a FCA authorised and regulated investment firm. He previously established and managed the global credit products business at the Royal Bank of Canada and has 30 years’ experience in various management roles of financial institutions. Gontarek serves on the supervisory board of FrontClear Management BV, which is backed by a consortium of global development banks to provide counterparty risk guarantees.
Citation
Gontarek, Walter (2016, March 1). Risk governance of financial institutions: The growing importance of risk appetite and culture. In the Journal of Risk Management in Financial Institutions, Volume 9, Issue 2. https://doi.org/10.69554/VAMF6201.
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