Risk Appetite

Treasury guidance requires the boards of all public sector organisations to publish a public statement of risk appetite. Few do. We have been working with aspirant CCGs, business support units and NHS Trusts around risk appetite issues and have found this a useful tool for a more general stepped change in how the board works. Boards that reflect on how they take decisions and know their genuine appetite for measured risk taking better understand the realism of their strategic approach. Executives who understand their board's risk appetite are able to create better board papers and business cases.

Partners, commissioners and suppliers all need to know about risk appetite in order to build sustainable partnerships for change. For example, our work is showing that CCGs appear to have a very different approach to risk taking than the former CCGs. Also NHS providers need to understand their risk appetite in order to have meaningful plans for meeting the Nicholson Challenge.

We can work with your board to:

• build an understanding of what risk appetite is, and why it is important
• identify and work through your board's individual risk appetite
• help the board understand the individual approach to risk taking of all board members to create better team working and ensure constructive challenge
• develop a plan for using risk appetite as a successful business tool

Publications

Briefing and Maturtity Matrix on Risk Appetite for Boards