The Code requires that risk appetite be expressed in both qualitative and quantitative terms to facilitate tracking of performance and compliance with agreed strategy. Risk appetite is also subject to annual review by the board.
The Central Bank’s experience, based on thematic work and reviews, is that such documentation is of variable quality and that the risk appetite may not always be embedded 2  BIS central bankers’ speeches  throughout the organisation. Further, we have noted varying degrees of skills, experience and knowledge with respect to risk and its management.