Article in The Banker’s publication, “How to Run a Bank”
The Banker has published Stilpon Nestor’s article on “Risk appetite – the new board agenda”, in its publication, “How to Run a Bank”, of March 2012.
|Stilpon’s article investigates the bank boards’ role in setting risk appetite and aligning the bank strategy with it. Crisis-battered regulators and risk-averse markets can no more allow gluttonous management to single-handedly determine a firm’s future risk exposure. Bottom-up hunger must be tempered by a top-down dietary regime. The article argues that strategy and risk appetite should be viewed as two distinct but closely related board workflows that need to be ‘strapped’ together, in both concept and practical organisation, in order to produce effective guidance for the institution and its management.|