The Central Bank of Ireland (Central Bank) issued a discussion paper on risk appetite on 20 June 2014. The paper is aimed primarily at directors and then at senior management within organisations regulated by the Central Bank.

The purpose of the paper is to generate discussion and debate with Central Bank stakeholders on risk appetite, its linkage with organisational strategy and its importance for financial institutions. The main concepts and theories of risk appetite and its place within Risk Appetite Frameworks (RAFs) are considered. Finally, the paper provides some suggestions as to what a risk appetite statement might contain.

The Central Bank is seeking the views of financial institutions, non-financial corporates, directors, professional advisors, academics and researchers as well as those with expertise in the risk management professions.

This paper will be open for comment until 1 September 2014.