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Managing Risk Better (20Q)

Risk Appetite Assessment

A key aspect of an effective governance regime, is a clearly articulated “Risk Appetite”.

A Risk Appetite Statement outlines how the business deals with uncertainty and limitations of knowledge in order to “reduce the incidence of decisions that are stupid, short term, narrow minded, or selfishly motivated.”.

This survey is designed to capture a comprehensive view of attitudes towards business uncertainty and risk management and how these influence strategic goals and operational practices.

Please consider each question in the context of both the challenges and opportunities that business uncertainty presents.

When you answer the following questions please appreciate that assessing “Risk Appetite” is a matter of balancing opinions, perceptions, contexts and propensities so there are no right answers. In this survey, “Business uncertainty” refers to a lack of structure or controls, confusion over expectations and responsibilities and ignorance about operational and governance issues.

Also, for the purpose of this survey, you can assume that “business uncertainty” is ONLY controlled by processes, policies, structures, and compliance and governance issues. Also remember that different types of decisions may warrant different levels of risk tolerance, and that respondents should answer each question within the specific context it presents.

The aggregated data will be anonymised.

Before we start on the survey, can you please tell us a little about yourself.
Your Age
Under 18
18-24
25-34
35-44
45-54
55-64
65+
Your Gender
Female
Male
Prefer not to say
Your industry experience
Less than 1 year
1-5 years
6-10 years
11-20 years
Over 20 years
Your functional role
Founder, Principal or Director
Responsible Manager/Senior Manager
Risk and Compliance Manager
Risk/Compliance Officer
Operational/Support Staff
People Leader
Financial Adviser
Technical or Subject Matter Expert
When considering new initiatives, how much value do you place on flexibility in decision-making?
Flexibility is key for adapting to market changes
It's important, but should be balanced with structured processes
I prefer a mix of flexibility and firm guidelines
I lean towards well-defined processes to mitigate risks
I prioritise strict adherence to established procedures
How would you reconcile short-term gains and long-term business health?
With a focus on sustainable growth, even at the expense of short-term gains
By capitalising on short-term gains to fund long-term strategies
With a preference for steady, incremental progress
By prioritising long-term health over immediate profits
With an aggressive pursuit of short-term gains to maximise immediate returns
How would you manage the trade-off between expansions and potential overextension?
By expanding cautiously to avoid overextension
With a strategic approach to capture market share aggressively
By focusing on maintaining current market share and profitability
With a balanced growth strategy that considers both risks and opportunities
By pushing for maximum expansion and addressing challenges as they arise
How do you assess the impact of new technologies on your business risk?
As an essential investment to stay ahead of the curve
With a focus on technologies that offer clear risk management benefits
Cautiously, integrating new tech as it proves reliable and necessary
As an opportunity for innovation and market leadership
With scepticism, preferring to stick with proven technologies
How do you prioritise financial outcomes in your decision-making?
I aim to maximise shareholder value, even with substantial financial risk.
I try to ensure stable and predictable financial returns with minimal risk.
I aim to balance growth and financial stability.
I’m open to high-risk, high-reward financial strategies.
I would diversify investments to spread and manage financial risks.
How do you approach the potential for regulatory changes affecting the business?
With proactive strategies to lead the market in compliance
By closely monitoring changes and adapting as needed
With a conservative stance to ensure full compliance before action
By engaging with regulators to influence outcomes
With minimal adjustments, maintaining our current course
How do you approach investing in a potentially disruptive but unproven technology?
I invest cautiously in proven technologies with predictable outcomes.
I allocate a significant portion of resources to stay ahead technologically.
I make small investments to test the waters before committing more resources.
I actively seek out innovative technologies for potential high returns.
I balance our technology portfolio with both stable and innovative investments.
How have you prioritised investments in risk management and compliance?
As a top priority to ensure long-term stability
Based on cost-benefit analysis and strategic goals
After other growth-oriented investments
As a necessary expense, but not a strategic focus
As a critical component of our competitive edge
How do you respond to an unexpected financial downturns?
By tightening controls and reducing spending
With strategic investments to capitalise on market shifts
By maintaining our course and waiting for recovery
With a balanced review of cost-saving and growth opportunities
By seeking aggressive growth to counteract downturns
How do you view competition in the context of business risk?
As a challenge to be met with aggressive strategies
As a factor to be carefully monitored and strategically managed
As a risk to be mitigated through defensive tactics
As an opportunity for collaboration and mutual growth
As a variable that should not significantly alter our risk profile
How do you balance the pursuit of new opportunities against the potential for increased liability?
By carefully evaluating and mitigating potential liabilities first
With a focus on opportunity over liability
By maintaining a balance between growth and risk management
With a strong preference for opportunities that present minimal liability
By aggressively pursuing opportunities, accepting higher liabilities
How do you assess risks and opportunities where you may be personally accountable for the outcomes?
I balance the potential risks with the possible rewards, aiming for an advantageous outcome.
I prioritise business growth and accept accountability for high-risk decisions for high-returns
I document all possible outcomes and make a decision that I can justify with data
I'm comfortable taking calculated risks that align with the business's strategic goals.
I’m cautious and choose the safest option to avoid personal accountability for negative outcomes.
In the face of potential operational disruptions, how do you commonly proceed?
With caution, prioritising risk avoidance
By preparing contingency plans but continuing with operations
Aggressively, viewing disruptions as a chance to outpace competitors
With a balanced approach, weighing risks against opportunities
By seeking stability and minimising any change
How do you respond to new or emerging risks facing your business?
I take a proactive stance, implementing preventive measures before risks materialise.
I monitor the risks closely and prepare to adapt our strategies as needed.
I evaluate the potential impact on our business before taking any action.
I focus on strengthening our core business to withstand unforeseen risks.
I prefer to maintain our current course until the risks show a tangible impact.
How do you approach significant decisions when faced with considerable uncertainty?
I embrace uncertainty as a catalyst for innovation and make bold decisions to capitalise on it.
I seek advice from experts or utilise decision-support tools to make the best-informed decision poss
I decide based on potential high-reward outcomes, accepting the uncertainty as part of the process.
I refrain from making decisions until I have more clarity.
I rely on my experience and intuition to guide my decision-making.
When faced with high-stakes decisions, how would you prefer to proceed?
By relying on data and analytics to drive decisions 
With a cautious approach, considering all possible outcomes 
By seeking consensus among stakeholders 
With bold moves to capitalise on potential high rewards 
By deferring the decision until more information is available
How do you manage risks that have both high potential for gain and high potential for loss?
I aim for a balanced approach, sometimes accepting higher risks for higher gains.
I focus on minimising potential losses, even if it means missing out on higher gains.
I actively seek out high-risk, high-reward opportunities & I'm comfortable with risking big losses.
I'm inclined to take risks that have the potential for high gains, accepting the possibility
I carefully analyse the risk-reward ratio and usually opt for a more conservative path.
How would you approach the acquisition of a new business or a merger with another business?
I'd aim for a balanced approach, assessing both the risks and opportunities. 
I'd focus on due diligence to minimise potential losses.
I'd actively pursue the acquisition or merger, recognising the high potential for both gain and loss
I'd be inclined to proceed if there is a strong strategic fit, despite the potential risks.
I'd carefully evaluate the alignment with our long-term goals before making a decision.
How do you view the role of uncertainty in business growth?
As a catalyst for innovation and opportunity
As a necessary element that can be strategically managed
As something to be minimised to ensure stability
As an uncomfortable aspect, but sometimes unavoidable
As a driving force for competitive advantage
How would you approach significant regulatory changes that impact the business?
I'd review the changes in detail and adjust our business practices to ensure compliance
I'd seek opportunities within the new regulations to gain a competitive advantage.
I'd advocate for industry engagement to shape the regulatory environment proactively.
I'd take a conservative approach, aiming to minimise disruption to our operations
I'd focus on training and development to equip our team to handle the regulatory changes effecti
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