Risk Appetite
Overview
Risk appetite is the level and type of risk an institution is willing to accept in pursuit of its business objectives. It is defined by boards and senior management and documented in policies. In compliance, risk appetite informs thresholds for KYC, transaction monitoring, pep sanctions screening, and fraud controls.Regulators require institutions to articulate and monitor risk appetite to ensure it aligns with regulatory obligations and business sustainability. A strong risk appetite framework balances growth opportunities with compliance expectations. It is continuously reassessed to adapt to emerging threats, regulatory changes, and market conditions.
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AML Screening
Screen users against Politically Exposed Persons (PEP), watchlists, sanctions lists, adverse media, and more through one-time screening and advanced monitoring.
Transaction Monitoring
Monitor transactions in real-time and analyse past behaviour to identify suspicious activities and ensure regulatory compliance across the user journey.
Database Verification
Instantly verify user information by connecting to trusted databases across jurisdictions for accurate, compliant, and faster onboarding.
Related Terms
FAQ
What is the risk appetite?
The level of risk an institution is prepared to take in operations.
Why do regulators require it?
It ensures businesses stay within safe boundaries while growing.
How is it defined?
By boards using governance, KRIs, and risk assessments.
How does it evolve?
It adapts to regulatory updates, fraud trends, and new markets.