ERM frameworks, risk appetite and limits

Module 04 / 5 · 65 min

Design or review an enterprise risk management framework, write a risk appetite statement and cascade it into limits with clear breach rules.

In this module you will learn to

Compare COSO ERM, ISO 31000 and the Basel Core Principles and relate them to NBE expectations
Integrate risk into strategy and business planning
Draft a risk appetite statement with capacity, appetite, tolerance and limits
Cascade limits from the board to business lines and branches
Manage limit breaches with clear escalation

Built on

Erudite Africa course specification: 4.b Risk Management Framework, Levels 1 and 2 (October 2026)
Erudite Africa: Training Module, Ethiopian Context, programme overview and regulatory register (October 2026)
NBE Risk Management Guidelines (May 2010)
NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/91/2024, SBB/93/2025, SBB/95/2025, SBB/96/2025, FXD/01/2024, NBE/INT/13/2026
National Bank of Ethiopia Proclamation No. 1359/2025; AML/CFT Proclamation No. 780/2013 and Personal Data Protection Proclamation No. 1321/2024 (as reported)
International frameworks: COSO ERM (2017), ISO 31000, Basel Core Principles for Effective Banking Supervision

Examples and organizations are fictional. Apply your own organization's approved policies.