Every day, front-line managers are making operational decisions about the minimum and maximum levels of risk which are far from an organization’s risk appetite policies and the level of risk that the organization is willing to take.
The front line is where income is generated, where employees interact with customers, and where emerging liabilities are first visible.
To successfully implement your risk appetite across the organization, you must be able to identify and define risk tolerances at the front-line process level. Robust monitoring tools allow organizations to evaluate risk tolerances for the root causes of risk at any level.
In turn, this allows organizations to connect front-line enterprise risk management decisions with overall risk appetite and determine which processes are out of range through intuitive, navigable dashboards and risk management reports.