Assume that you are a risk management consultant. You have been hired by two businesses:

• A commercial bank with branches and operations in the United States, Europe, Asia, and Africa.
• A public utility company operating coal-powered and nuclear-powered power plants in Florida, California, and Alaska.

You have been asked to make a presentation to the board of directors of both companies, as they begin the process of setting their risk appetite for the next 3 years.

At each presentation one recalcitrant board member asks you: "Why should our company care about this whole risk appetite thing?"

What would you say? For each, please make sure that you refer to:

• Industry-specific risks; and
• Potential company-specific risks (based e.g., on their location of operations, etc.).