The Financial Stability Board has launched a public consultation on its draft Principles for an Effective Risk Appetite Framework. The aim of the Principles is to enhance supervisory oversight of firms, in particular of systemically important financial institutions (SIFIs), by establishing minimum expectations for the key elements contained in an effective risk appetite framework, such as: an actionable risk appetite statement; quantitative risk limits; and clearly defined roles and responsibilities of the board of directors, senior management and business lines.

Responses must be submitted by Monday, 30 September 2013.