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COSO's thought paper on risk appetite

Friday, January 20, 2012

On January 20, 2012, COSO issued a thought paper that provides guidance for organizations to understand and communicate concepts related to risk appetite. Organizations encounter risk every day as they pursue their objectives. The amount of risk organizations are willing to accept in pursuit of their objectives is an integral part of an effective enterprise risk management system. This thought paper aims to help organizations develop, better articulate, and implement a risk appetite. It provides examples of statements of risk appetite and emphasizes the notion that risk appetite should be clearly defined, communicated by management, embraced by the board, and continually monitored and updated.

Please find a copy of the paper at IMA' Research Library on Link Up IMA at