Risk Policy

From Open Risk Manual

Definition

Risk Policy is the set of formal instructions, typically documented and approved by internal governing bodies, that define in sufficient operational detail an organization's perception and attitude towards the range or risks it faces and desires to manage

Risk policy is a key part of an organization's Risk Framework

Usage

  • Risk policies are typically focused and tailored to the major risk types facing an organization
  • Risk committees are key organizational elements in developing and overseeing the application of risk policies

Examples

  • Market Risk Policy
  • Credit Risk Policy

Issues and Challenges

  • The risk specific design of policies contributes to the Risk Silo effect

Contributors to this article

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