Final remarks on risk appetite statements

04 December 2019

The risk appetite statement should not be considered in isolation but should be considered in the context of the broader financial crime risk management framework.  

The risk appetite statement informs policies and procedures which should be designed to ensure that the controls are in place to mitigate the inherent risks to within the agreed tolerable levels.  

The risk assessment, which is itself a key part of the ‘risk management framework’ should assess the inherent risks that the institution is exposed to and the suitability and comprehensiveness of the controls that mitigate the inherent risks to the defined risk tolerances (residual risk) as set out in the risk appetite statement.

Management oversight should ensure the connectivity of the financial crime risk appetite with the financial crime risk assessment and with the controls and policies & procedures.  They should monitor the effectiveness of the controls and manage the risk to within risk tolerances.  

When the risk and control frameworks join up effectively, financial crime risk is effectively understood and managed to within the institution’s risk tolerances and the objective of not being used in the furtherance of financial crime and in meeting regulatory requirements is achieved.

Sian  Herbert

Sian Herbert  | Partner, PwC United Kingdom
Profile | Email 



Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.


Post a comment

Comments are moderated and will not appear until the author has approved them.