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Controlling risk
Strategic capabilities
Roles
1.1 Role of the board
The board of an organisation plays an important role in risk management. A
framework for board consideration might be:
Business Strategy
What the company
will do
Risk appetite
Risk Strategy
How much risk the How risks will be
business will
accept managed
Residual Risk
Risk that cannot be
managed
Risk attitude Risk capacity
Overall approach to Maximum risk the
risk business can
accept
NB The board will generally delegate these activities to a risk committee
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