~ [[University of Salford Students' Union|Salford SU]] >[!External Links]+ >- ![[Risk Appetite FINAL.docx]] ## Development Set by the Board following [[Susie Palmer Trew]]'s guidance. Session at June 2024 Board away day, then approved at the [[Salford SU Board of Trustees|Board of Trustees]] meeting on 12 February 2025. ## Definition Risk appetite is defined as *'the amount of risk an organisation is prepared to seek, accept or tolerate to achieve its strategic objectives'*. The purpose of defining a risk appetite is to facilitate a common understanding and potentially greater delegation of authority and accountability. ## Risk Appetite Statement > *Salford SU has a responsible approach to risk management, seeking to recognise and manage exposure to risks; building a culture that is more accepting and encouraging to the opportunity presented by risk in pursuit of achieving our strategic priority outcomes. The Union will accept a degree of risk, commensurate with the potential reward accepting that on occasions taking calculated risks will be appropriate.* ## Risk Appetite Categories | Appetite | Willingness | Authority | |----------|-------------|-----------| | **Seeking** | Take aggressive risks to achieve strategic benefit; Accept a large negative impact to achieve a strategic outcome | Trustee Board | | **Tolerant** | Take greater risks than usual; Accept some negative impact to achieve a strategic outcome | Delegated to SLT | | **Neutral** | Take a balanced approach to risks; Accept a potential negative impact to achieve a strategic outcome | Delegated to SLT | | **Moderately Averse** | Take a cautious approach to risk; Accept minimal negative impact to achieve a strategic outcome | Delegated to SLT | | **Averse** | Take little or no risk; Accept no negative impact to achieve a strategic outcome | Delegated to SLT | ## Risk Appetite by Area | Area | Risk Appetite | Statement | |------|---------------|-----------| | **Compliance, regulation and ethics** | Moderately Averse | Committed to maintaining the highest standards of integrity, compliance, and ethics. No appetite for breaches (caused by negligence) in statute, regulation, professional standards, research ethics, bribery, or fraud. Includes health and safety, systems and processes. Accepting that despite mitigation, unforeseen circumstances could result in internal policy breaches (e.g. isolated incidents at an event). | | **Student Experience** | Risk Tolerant | The Union wishes to empower students to have a voice at University, fulfil their potential and get the most from their University experience. Will innovate by consistently listening to students to implement new developments and initiatives to improve the experience. | | **Reputation** | Risk Tolerant | Open appetite to establish a more ambitious and vibrant reputation, accepting that actions that result in a loss of confidence by the university are not acceptable. | | **Financial performance, commercial activities and sustainability** | Risk Tolerant | Committed to proper financial management. Open appetite for any risks which enable the exploration of diverse income streams. Will ensure potential benefits and risks are fully understood before developments are agreed and that appropriate measures to mitigate risk are established. | | **People and Culture** | Risk Neutral | People are the most important asset of our organisation, committed to supporting all employees to realise their potential in a safe, stimulating and inclusive environment. Future emphasis on a culture characterised by agility, equity and diversity, focusing on delivery, high performance, and respect. | | **Change** | Risk Tolerant | Recognise that innovation is key to future success and sustainability. Open to identifying and implementing future organisational changes. In respect of business as usual, committed to maintaining continuity of all aspects of operations (whilst they are needed and continue to be viable) and have a low appetite for any risks, incidents, or events which could impact upon normal operations. |