Risk Response and Control Activities
ØAfter risk has been
identified and analysed, bank management evaluates to determine which risks
are to be treated and the priority for treatment implementation. This process
is known as risk evaluation. The bank should consider:
a. External
and internal environment the bank operates in (that is, the established bank
context)- this will largely involve the overall strategic direction of the
bank
B. Risk
appetite of the bank, as established earlier in the risk management process-
for example, where the bank is involved in speculative activities, high risk
activities may not always require priority treatment
C. Risk appetite of parties other than the bank (that is, the
stakeholders)- for example, some high risk activities may be more acceptable
to the public than others