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The overall statement outlines all levels and types of risk that the bank is willing to take on for each risk type within its risk capacity to achieve its strategic objectives and business plan. The statement, especially for non-financial risks, plays a pivotal role, thus, it should be sufficiently structured and specific to provide guidance and actionable implications for risk management decisions.

As general good practice, the following four RAF elements should be addressed in each statement:

 definition of the entity’s ambition towards regulatory compliance (e.g. compliance to minimum applicable requirements versus full compliance also to non-mandatory requirements);

 translation of the ambition into objectives, expressed for example in terms of internal operations and customer interactions;

 expression of tracking mechanisms by which it is possible to acknowledge progress towards the objective;

 identification of the standards by which the bank measures its performance.

The table below shows exemplary non-financial risk RAF statements from large international banks.