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Strategic Risk Appetite Profile

Strategic Risk Appetite Profile

Risk appetite; determined by people’s thoughts and actions; is unique, personal and subjective, and it drives all major decisions and actions in any organisation. Yet, when companies do leadership training and development, they do not always understand their people’s approach to risk and strategy. The new normal will require new ways of work and the ability to innovate and act on new opportunities as they arise. This will also require new leaders, with the right mindsets and abilities, who can proactively plan for disruption and change rather than reactively respond to it. This means not just being resilient as an organisation or as an individual, but rather bouncing back to a more beneficial place, in a new context (agility), instead of bouncing back to where you were (resilience).

This enables organisations to respond quickly and effectively to unfolding events, and rapidly kickstart new growth and opportunities. To do this, organisations need to:

  • Understand the context organisations operate in and the uncertainty leading to risk and opportunity
  • Manage stakeholder and shareholder expectations and retain or improve their reputation
  • Develop risk-based, proactive strategies that maximise the positive risks or opportunities and minimise or manage the negative risks
  • Plan for change and manage strategy implementation with flexibility and agility, across a variety of potential futures and addressing implementation risks as they arise
  • Be able to deal with known and unknown risks quickly, act decisively and build resilience
  • Build agile leadership that can lead in the face of exponential uncertainty and risk