14.4 RMF’s role in risk appetite and limits

The RMF should independently assess breaches of risk appetite or limits. The RMF should inform the business or internal units concerned and the management body and recommend possible remedies. The RMF should report directly to the management body in its supervisory function when the breach is material, without prejudice for the RMF to report to other internal functions.

The RMF should play a key role in ensuring that a decision on its recommendation is made at the relevant level, complied with by the relevant business units and appropriately reported to the management body and, where established, the risk committee.