Risk Appetite Statement
Implementing a strategy will always have risks. Effective risk management increases the probability of successful outcomes, whilst protecting the reputation and sustainability of the Trust.
The management of risks is undertaken within a framework comprising:
- Scheme of delegation
- Trust Board and sub committee terms of reference
- Risk appetite statement
- Risk register
- Policies and controls
- Internal and external audits
The Risk Appetite statement specifies the amount of risk the Trust is willing to seek or accept in the pursuit of its long term strategy. It indicates the parameters within which the Trust would want to conduct its activities.
Prioritisation of Risks
The need to avoid the following risks will take priority over other factors:
2. Quality of teaching and learning
e.g. it will not be acceptable to undertake risks in certain areas such as quality of teaching and learning
e.g. the Trust is open to innovation in education and student experience, if this supports and enhances the curriculum and outcomes and does not expose it to undue finance or compliance risks.
A balanced assessment has to be taken of risks - in many cases there are risks attached to both doing something and doing nothing.
This statement is a guide indicating the:
- Areas to be innovative
- Areas to conservative and compliant, and
- "Lines" which should not be crossed, and where the Board would need to be notified.
Statement of Risk Appetite
The Trust's approach is to minimise its exposure to safeguarding, compliance, reputational and financial risk, whilst accepting and encouraging an increased degree of risk in pursuit of its strategy. It recognises that its appetite for risk varies according to the activity, and that its acceptance of risk is subject to ensuring that potential benefits and risks are fully understood before developments are authorised, and that measures to mitigate risk are established.