Objectives On completion of this tutorial, you will be able to:

• Recognize the relationship between business strategy and risk and the importance of aligning risk appetite with strategy
• Identify the stages in the risk decisioning process and how such decisions can impact risk exposure

Tutorial Overview This tutorial describes how banks take risk into account when setting business strategy and how risk appetite is aligned with business objectives once the strategy is determined. It also explains the importance of a risk management framework and how the various elements of the framework work together when setting and implementing risk appetite. Finally, the tutorial examines the risk decision process in detail and outlines the factors, including the human element, that can affect decision-making. Prerequisite Knowledge Risk Management - Risk Types & Measurement Tutorial Level: Intermediate Tutorial Duration: 50 minutes