Much is written about enterprise financial risk metrics--but little is written about the level, design, and implementation of risk limits. In Risk Framework Design in Practice: Getting Risk Governance and Limits Right for Financial Institutions, veteran portfolio and risk manager Michelle Beck delivers a robust and functional approach to risk governance for different types of firms, including banks, asset managers, insurers and corporate pensions. Using the experience of expert risk practitioners and supported by the latest academic research, the book provides a practical set of recipes for the different levels of an organization, discussing the many detailed properties of risk measures and how to convert them across different types of units as well as implementation challenges and how to overcome them. Readers will find key insights on: How firms establish risk appetitesEssential elements of governance structures that ensure the right decisions either rise to boards and senior management or are left to staff discretionLimits that are used for market and credit risks, including the implications of alternative methods, with detailed guidance for staff charged with implementationApproaches to limiting economic capital, value at risk, stress tests, exposures, concentrations, and drawdowns; effective approaches for operational and model riskHow to test risk controls to ensure they are effective; when tests reveal issues, how to distinguish those that point to genuine flaws in risk controls Filling a critical gap in existing literature, Risk Framework Design in Practice: Getting Risk Governance and Limits Right for Financial Institutions earns a well-deserved spot on the bookshelves of chief risk officers and professionals working in enterprise risk departments at banks, broker-dealers, insurance companies, asset managers, and hedge funds.