Risk Appetite: Fight or Flight?

Risk appetite... this notion is something of a paradox in times of crisis. Generally speaking no one likes risk; we all strive to limit it as much as possible. However, behind this notion is hidden the idea of determining a company's profile. Without a precise definition of its profile, how can one adopt the appropriate strategy that would be approved by the company's shareholders?

Defining risk profile remains a delicate calibration exercise but is a prerequisite for ERM (Enterprise Risk Management). In this article, we will demystify this somewhat confusing concept. 

Key Points

  • Risk appetite or risk profile?
  • Risk appetite concepts
  • Risk profiling for corporates
  • Strategic objectives: the basis of the risk profile


Written by

François Masquelier
Head of Corporate Finance and Treasury, RTL Group, and Honorary Chairman of the European Association of Corporate Treasurers
RTL Group

Risk Management Series (30 articles)


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