~ [[130 - Governance]] # Salford SU Risk Appetite Developed following a session at the Board Away Day in June 2024, presented by Susie Palmer-Trew (Deputy Chair). Approved at [[2025-02-12 - Board of Trustees]]. The purpose is to give the Board, SLT, and staff a shared framework for making risk-informed decisions and to enable greater delegation. ## The Framework Risk appetite is defined as "the amount of risk an organisation is prepared to seek, accept or tolerate to achieve its strategic objectives." Five levels of appetite, each with associated delegation authority: | Appetite | Meaning | Authority | |---|---|---| | **Seeking** | Take aggressive risks; accept large negative impacts | Trustee Board only | | **Tolerant** | Take greater risks than usual; accept some negative impact | Delegated to SLT | | **Neutral** | Balanced approach; accept potential negative impact | Delegated to SLT | | **Moderately Averse** | Cautious; accept minimal negative impact | Delegated to SLT | | **Averse** | Little or no risk; accept no negative impact | Delegated to SLT | ## Risk Appetite by Area | Area | Appetite | Key Statement | |---|---|---| | **Compliance, regulation and ethics** | Moderately Averse | Zero tolerance for negligent breaches in statute, regulation, H&S, bribery or fraud. Accepting that unforeseen isolated incidents (e.g. at an event) may occur despite mitigation. | | **Student Experience** | Tolerant | Will innovate and implement new developments to improve student experience. Consistently listening to students to inform this. | | **Reputation** | Tolerant | Open appetite for a more ambitious and vibrant reputation. Actions resulting in loss of confidence by the University are not acceptable. | | **Financial performance & commercial** | Tolerant | Committed to proper financial management. Open appetite for exploring diverse income streams. Benefits and risks fully understood before proceeding. | | **People and Culture** | Neutral | People are the most important asset. Committed to safety, inclusion, agility, equity, diversity, and high performance. | | **Change** | Tolerant | Open to future organisational change and innovation. Low appetite for risks to business-as-usual continuity. | ## Key Points for Decision-Making - The Risk Appetite is a **discussion tool**, not a numerical scale - It is intended to be reviewed and updated if the operating environment changes significantly or there is a change of strategic direction - The statement reflects both aspiration and current practice — "record current practice to guide future decision-making" - The SU is operating in a rapidly changing HE sector; short-term risk increases in some areas are expected and acceptable ## Relationship to Other Documents - The [[Salford SU Scheme of Delegation of Authority]] uses appetite levels to determine what can be delegated to SLT - The [[Risk Register]] — approved September 2025 (blank-slate approach) — uses the risk appetite as its calibration framework ## Source Document `Risk Appetite FINAL.docx` — Board of Trustees Meetings / 2024-25 Year / 2025.02.12