Building a Federal Risk Appetite Framework
Federal CFO Insights
For a Federal CFO, a formal risk appetite framework is a fundamental tool towards staying “wise” with the risk intelligence framework. By helping leadership manage risks to an acceptable level, a CFO can better balance resources as well as focus his or her time and attention towards innovation and better achieving the agency’s mission. However, a risk appetite framework is only as good as its implementation. To be able to apply a risk appetite consistently across the enterprise, it needs to be aligned to the agency’s strategic plan, as well as integrated into its current ERM and key support function procedures. In a future Federally Technically Speaking, we will address how to apply the risk appetite framework as well as methods for determining how well an agency is staying within its risk appetite.
Download the latest CFO Insights article to learn more.