Il risk appetite framework: una «teoria del tutto» per le banche?

Abstract

If banking is to manage risks, then the Risk Appetite Framework (RAF) can represent a "Theory of Everything" for financial institutions. The present work intends to propose a conceptual scheme based on the RAF and its key metrics, to logically link all the bank's main strategic processes. The proposed framework integrates the RAF with the risk management processes, the operational management limits, the internal stress test analyzes, the ICAAP and ILAAP, the Exceptional Transactions management, the New Product Approval Process, the process of Strategic Planning and Budget, the management of corporate crises (Recovery Plan and Resolution Plan) up to remuneration and incentive policies and practices and the related governance mechanisms.

Keywords

• risk appetite framework
• risk governance
• risk management
• banks