Appetite For Risk Of The Bank (I)
Representing the "amount" of risk that a bank is able and willing to accept in pursuit of its objectives, so as to balance the needs of all interested parties the risk appetite (propensity) is expressed in terms of both quantitative and qualitative, and covers all risks and not just financial risk, as understood in recent years. Risk appetite problems include issues such as the context and relationship of the risk appetite to the appetite risk aversion, fair and transparent declaration and communication of its risk appetite of the bank, applying risk appetite, determining, assessing and measuring risk appetite bank. Understanding the risk appetite will be possible only when the risk to the bank will be seen in the context of potential profit and capital requirements and business prospects of the bank will be aggregated into a picture (portfolio) of the bank's strategy, a consistent approach to appetite risk equivalent to a bank's approach to strategy, requiring that the entire top leadership of the bank to get involved Appetite for risk is an evolving concept that requires a continuous effort of research and although the concept is still unclear, the appetite for risk is a useful tool for risk management within the bank as a whole.
Volume (Year): 15 (2011)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Phone: 004 021 3182419
Fax: 004 021 3182419
Web page: http://www.icfm.ro/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- repec:ebl:ecbull:v:28:y:2003:i:6:p:a6 is not listed on IDEAS
- Miroslav Misina, 2003.
"What does the risk-appetite index measure?,"
AccessEcon, vol. 28(6), pages A6.
When requesting a correction, please mention this item's handle: RePEc:vls:finstu:v:15:y:2011:i:2:p:209-223. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Mateescu)
If references are entirely missing, you can add them using this form.