Risk Appetite-to-KRI Decision Engine
An automated linkage between risk appetite, KRIs, thresholds and escalation workflows that supports timely, informed risk decisions.
01 / The problem
Why the usual approach falls short
Risk appetite statements and KRIs can sit in separate documents, causing threshold breaches to be reported without a clear decision, escalation path or response.
02 / Design logic
The operating principles
- 01
Translate appetite statements into measurable indicators and explicit tolerance bands.
- 02
Connect each KRI to a risk owner, data source, review cadence and response playbook.
- 03
Trigger proportionate alerts, escalation and documented decisions when exposure changes.
- 04
Show current exposure, trend and management action in one decision view.
03 / Intended outcome
What better looks like
A living risk appetite system that links changing exposure to accountable management action instead of retrospective reporting.