Static Risk Appetite Frameworks Are Dead – FIS on the Rise of Scenario Simulation

Article

Static Risk Appetite Frameworks Are Dead, Long Live Scenario Simulation

This article explores new research from FIS and CeFPro showing that static, annual risk appetite frameworks are no longer fit for purpose. It outlines how financial institutions are adopting dynamic, integrated scenario simulation to align capital, liquidity, and operational resilience—and transform volatility into strategic advantage.

11月 04, 2025

Mark Norman, Head of Content, Center for Financial Professionals

Tags: Market Risk

Static Risk Appetite Frameworks Are Dead, Long Live Scenario Simulation

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

FIS and CeFPro report finds static risk appetite frameworks are obsolete in today’s volatile landscape.
48% of firms are revising frameworks; 86% are investing in scenario simulation.
Execution and integration now define success across capital, liquidity, and operational testing.
Stochastic modeling replaces deterministic methods to capture systemic interdependence.
Unified data and visualization drive board-ready, real-time decision-making.
FIS warns lagging institutions risk losing both prudential strength and competitive edge.

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