Risk Appetite Statement
Although understanding your credit union’s risk tolerance is nothing new, documentation and development of the risk appetite is something that credit unions may be less familiar with. However the benefits of building an effective risk appetite statement are numerous.
Through documentation of the board’s direction, the statement will guide management in making strategic and operational decisions. The risk appetite statement will clarify the amount and type of risk your credit union is able and willing to accept in pursuit of your business objectives. The statement will be accompanied by an easy to review dashboard that demonstrates where your credit union is trending in regard to key identified quantitative risks.