This document presents a proposed update to the GCF risk appetite statement to make it fit-for-purpose for an experienced and maturing GCF and to respond to the Board’s strategic directions contained in the updated Strategic Plan for the GCF 2024–2027 (USP-2).
The updated risk appetite statement aims to ensure that the risk appetite reflects the evolution of the GCF and its policies, the climate change and climate finance landscape, and the strategic priorities outlined in USP-2 while remaining aligned with the Governing Instrument for the GCF. It also establishes a foundation for revising the other components of the GCF risk management framework to ensure a cohesive and aligned approach to risk management.