Risk Appetite

Read Time:2 Minute, 21 Second
Risk Appetite

Risk Appetite is an often used phrase in corporate and professional world to showcase how much of a risk taker a person is, or how much risk a situation can warrant and afford.

It would have a wide variability. Depending on the kind of business, service, impact on end user, direct and/or indirect.

Being a part of some huge Finance driven and platformed organizations and departments, I have seen Risk up close and the scare it carries for the business. It always would have a predictive impact in the future that has to be mitigated now, or as some C-Suite would like to say, “yesterday!”

These are organizations which needs to be Risk averse, because risk is in-built into the transactions by it’s very nature of work. Credit rating analysis, Wealth Management, Payable works, or complete P2P value chain. Here, the SBUs and BUs do not need to go find the risk, because it may gain some return, rather risk, in this case needs to be identified proactively, and minimized (not eliminated. It can never it eliminated, ask any LEAN practitioner!)

However, from another vantage point, Risk Appetite also drives all the kinds of business and departments I listed above. How else, would we grant a credit profile to a prospective customer basis some statistical inference? Or how else would an investment banker invest the customer’s money to increase their wealth!

Now coming to those, who would need to have Risk Appetite, to grow, survive and thrive. To begin with, entrepreneurs.

They need to take risks, weigh, measure, evaluate and take steps that brings growth faster in a competitive market. Or with marketing agencies, or with consumer durables which compete in a growing yet time-bound and claustrophobic market!

And quite understandably, Risk Appetite has subjective definitions for each one of us, with a mix of variables which varies in the count of parameters and weight of each one of them too.

Any investor with a decent investment portfolio can give an hour worth of knowledge on Risk taking, and how it can be beneficial, that can be weighed against money. But the challenge comes generally in meeting rooms, when conflicting experiences, each with it’s own merit, clashes in forms of ideas to mitigate a common Risk, the Organizational or Business or Departmental Risk. Sometimes, against it’s Reward or Benefit.

And this subjectivity creates a healthy debate that can be effectively used by a leader for a profitable disruption and/or decision.

For me, it’s a mix that looks like the viz I made on top!

What is Risk Appetite for You?

Please give your views and comments below.
It would help me and other readers understand your Risk Appetite

Or feel free to read the excerpt to this article and comment on your LinkedIn

About Post Author

K. S. Alok Ranjan

17-year experience in Corporate Quality & Project Management, last 6 years in Leading Change Management across Businesses & Stakeholders with Thought Leadership. Currently part of leading/directing Corporate Risk Business Architecture in the Business Process Management team. Engaged in leading Process Excellence efforts in a matrixed organization, creating and risk-assessing platforms for Digital Innovations, Statistical Process/Quality Control, Excellence awareness, designing Improvement Approaches, predicting control gaps and strategizing Operational Management. Throughout career, built departments for business needs, Managed pain areas, provided time bound solutions, planned sustainability of existing/new solutions, Transformed processes for NVA/defect identification and minimization. Managed multiple stakeholders parallelly, resolved conflicts for effective program/project/engagement implementations.
Happy
Happy
0 %
Sad
Sad
0 %
Excited
Excited
0 %
Sleepy
Sleepy
0 %
Angry
Angry
0 %
Surprise
Surprise
0 %

Average Rating

5 Star
11%
4 Star
11%
3 Star
28%
2 Star
22%
1 Star
28%

41 thoughts on “Risk Appetite

  1. Some tips i have observed in terms of pc memory is that often there are specs such as SDRAM, DDR and so on, that must fit in with the specific features of the mother board. If the pc’s motherboard is very current and there are no operating system issues, updating the memory literally usually takes under one hour. It’s on the list of easiest laptop or computer upgrade methods one can think about. Thanks for revealing your ideas.

  2. Does your site have a contact page? I’m having trouble locating it
    but, I’d like to shoot you an e-mail. I’ve got some
    creative ideas for your blog you might be interested in hearing.
    Either way, great website and I look forward to seeing it expand over time.

    Look into my web site :: hp certification

  3. First of all I would like to say awesome blog!
    I had a quick question which I’d like to ask if you do not mind.
    I was curious to find out how you center yourself and clear your head before writing.

    I’ve had a difficult time clearing my mind in getting
    my thoughts out there. I do take pleasure in writing but it just seems like the first
    10 to 15 minutes tend to be lost simply just trying to figure
    out how to begin. Any recommendations or tips?

    Many thanks!

    My blog phlebotomy exam

    1. Thanks for liking, and for the question too!
      Well, I have trouble concentrating too, and sometimes have a lot of distractions. I just try to find some time that is convenient, and wait for the push to come in form of an idea. That acts as a driver, lever and automatic push.
      Hope this helps!

      Here’s a graphic I created, might help you more! Heart and Mind

  4. I simply needed to thank you very much once again. I’m
    not certain the things I could possibly have used in the absence of the entire information revealed by you relating to that area.
    Previously it was the troublesome scenario for me, but understanding the expert tactic you solved the issue made me
    to jump over delight. I’m just thankful for your support and
    then hope that you find out what a powerful job you have been undertaking training men and women by way
    of your webpage. Probably you’ve never encountered any of us.

    Review my website … pmp 35 pdu (Erna)

  5. Undeniably believe that which you said. Your favorite justification appeared to be on the net the simplest
    thing to be aware of. I say to you, I definitely get annoyed
    while people think about worries that they plainly don’t know
    about. You managed to hit the nail upon the top as well as defined
    out the whole thing without having side-effects , people
    can take a signal. Will probably be back to get more. Thanks

    My web-site: bread coupons (Ivey)

  6. I like the valuable info you supply for your articles.
    I will bookmark your blog and check again right here regularly.

    I am rather certain I will be informed many new stuff
    right right here! Best of luck discount coupons for restaurants (Violette) the following!

  7. First of all I want to say superb blog! I had a quick question that I’d like to ask if you do not
    mind. I was interested to find out how you center yourself and clear your head prior to writing.
    I’ve had a tough time clearing my mind in getting my ideas out.

    I truly do take pleasure in writing however it just seems like the
    first 10 to 15 minutes are usually wasted just trying
    to figure out how to begin. Any suggestions or hints?
    Thank you!

    my website :: certified professional coder (Jayme)

  8. First of all I would like to say wonderful blog!
    I had a quick question that I’d like to ask if you
    don’t mind. I was curious to find out how you center yourself and clear your thoughts prior to writing.
    I have had a difficult time clearing my thoughts in getting my thoughts out there.

    I truly do enjoy writing however it just seems like the first 10 to 15 minutes are
    lost just trying to figure out how to begin. Any ideas or tips?
    Thank you!

    my web-site: free pmp practice exam (Kayleigh)

  9. I precisely wished to say thanks again. I am not sure the things that I might have carried out without
    the entire ideas shared by you on my concern. It was before a real frustrating condition for me, however , being able to view the very well-written way you treated the issue made me to weep with joy.
    I am happier for this help and in addition have high hopes you are aware of a powerful job you were
    doing teaching men and women using your website.
    Probably you haven’t encountered any of us.

    Also visit my website: pmp simulator (Karissa)

  10. Hey! Someone in my Facebook group shared this website with us so I came to take a look.
    I’m definitely loving the information. I’m book-marking and will be tweeting this
    to my followers! Great blog and wonderful design and style.

    my blog; schema (clck.ru)

  11. Definitely believe that which you said. Your favorite reason seemed to be on the net the easiest factor to keep in mind of. I say to you, I definitely get irked while other folks think about worries that they just do not recognize about. You controlled to hit the nail upon the highest as neatly as defined out the entire thing without having side-effects , folks could take a signal. Will likely be again to get more. Thank you

  12. Thanks for your article. I also think that laptop computers have gotten more and more popular lately, and now tend to be the only type of computer used in a household. This is due to the fact that at the same time potentially they are becoming more and more economical, their processing power keeps growing to the point where they are as highly effective as desktop computers out of just a few in years past.

Comments are closed.