The missing piece in operational risk appetite

Setting an op risk appetite is illogical without reference to reward, argues Ariane Chapelle

Ariane Chapelle is honorary reader in operational risk at University College London and the director of Chapelle Consulting, a UK-based risk management advisory firm

Almost a decade after its proliferation in the financial sector, risk appetite continues to raise questions. In operational risk, firms continue to struggle with the concept, as well as expressing it and translating it into action.

Having worked with firms for years on the topic, I observe that the wording is particularly ill