From Foodies to Picky Eaters: Exploring Risk Appetite
Each nonprofit team has a unique position on risk-taking: what is considered an acceptable and appropriate level of risk-taking in order to move a nonprofit’s mission forward. Join this session to explore the concept of risk appetite and how your team can define what constitutes appropriate risk-taking for you. Many ERM professionals believe that a carefully considered risk appetite framework can enable a team to align its risk-taking decisions to optimize performance toward objectives, while maintaining agency-wide risk at a level deemed tolerable to the organization’s health. Other ERM thought leaders appreciate risk appetite theoretically, but find its execution to be flawed—especially if risk appetite work is not actionable by management. During this session, attendees will learn about the wide array of perspectives on risk appetite, and common components of a risk appetite framework including statements on appetite, tolerance, and capacity. Come prepared to learn how to make risk appetite more actionable for nonprofit leaders—like you!