This issue of BoardroomDirect® includes an article about the meaning of risk appetite and the role the board and management play. There is also news about a Delaware court decision on fee-shifting bylaws, the new Venezuelan foreign currency exchange regime and an update on the 2014 shareholder proposals, the proposals for Audit Quality Indicators and the conflict minerals disclosure rule.
Issue in focus: The meaning of risk appetite
Risk appetite should have a starring role in a company’s overall strategy and investment decisions. But the concept can be confusing.
So what is risk appetite, and why is it so important?
By definition, it is the amount of risk an organization is willing to accept in pursuit of strategic objectives. When done right it is a robust process that can help management and the board understand exposures and make appropriate risk-based strategic decisions. [Read more in a new PwC publication Board oversight of risk: Defining risk appetite in plain English.]
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