Building a sensible risk-appetite framework is not that easy. And it’s not enough to just build one; 2/3  BIS central bankers' speeches  it also has to be applied. That’s the crucial point. Banks must turn the risk appetite framework into a key element of their risk culture and their decision-making. What does that mean?
It means that all parts of risk management must be precisely aligned to each other – including the risk appetite frameworks. And they must be aligned to the rest of the organisation as well. What good is a well-defined risk appetite if the remuneration schemes set different incentives?