Imagine running-up to take a penalty, only for the goalposts to move just as you’re about to kick the ball. What if the ball was the capital you’re managing and the goalposts the risk you’re prepared to take? That sums up what risk managers have had to contend with during COVID. Yet most organizations adjust their risk-appetite annually. A better approach would be to use explainable machine-learning algorithms to frequently update your risk appetite – all the better to ensure you hit your target, even if it’s a moving one. For more details, read this article in GARP.