Risk appetite. The main focus of private sector risk management is on maintaining and enhancing profitability. In contrast, the public sector focuses on the fulfilment of objectives and delivery of a beneficial outcome in the public interest. Mintek, as a Schedule 3 Public Entity, is positioned between the private and public sectors. Mintek must adopt well-managed risk taking where it is likely to lead to improvements in service delivery. It is recognised that risk taking is essential if Mintek is to innovate and improve. Mintek’s risk appetite is reflected in our strategic objectives. Our overall portfolio of risks must be balanced to ensure, as far as possible, that the mix of risks remains tolerable.
Risk appetite. Risk appetite is the level of risk that may be contained in the Project to maximize value. The risk appetite is determined by the policy setters in the Project and defines the limits of exposure to risk that they are willing to undertake. The risk appetite reflects the operation and execution strategy of the Project, its goals, the business plans and the expectations of interested parties, the willingness and ability to take risks and it may change with time. Field Sample Declarations on risk appetite Finances / investments / budget * Maintaining a cash flow that allows ongoing operations * Maintaining compliance with budget goals / budget supervision on large projects * Maintaining a minimal investments budget Regulation * Rate of internal regulation violations (internal procedures) * Zero tolerance for violations in the field of local and international compliance Security * Number of security events - harm to employees / clients, no more than X incidents per year * Zero tolerance to security faults that affect air traffic * Zero tolerance to loss of life or severe injury Environment * Minimum environmental pollution Goodwill * Reduction of the number of negative publications in the national and international media * Zero tolerance to cases of refusal of an international airline to arrive in the airport as a result of goodwill Here are examples of declarations on risk appetite and the way to turn them into quantitative indicators:
Risk appetite. Holcim’s risk appetite and evaluation of a customer’s credit worthiness will determine the trading terms & limit under which a customer shall trade within Holcim. The key objective is to convert all sales orders into cash within standard trading terms that require payment to be received by Holcim in full (without any set-off) within the approved credit terms. A Credit facility is offered to facilitate sales, to meet market and customer expectations and provide a competitive advantage to the organization. Risk shall be assessed & controlled by Risk Assessment Matrix & Guidelines for ALL New & Existing Customers: ● An approved Holcim credit limit. ● Market specific terms of trade (days of credit) ● The Holcim Delegation of Authority ● Credit Process ● Holcim Standard Terms & Conditions(and any amendments thereto) as approved Legal Risk shall be mitigated by: ● Professional Credit Management processes through the application of sound commercial customer management processes operating in a Continuous Improvement environment. ● Security via Charging/Caveating of Real Property; PPSR Registrations via PMSI’s (Purchase Monetary Security Interest & ALLPAP’s (All Past & Present Property – No exception) ● Targeted market offer & Business Strategy ● A defined risk escalation process within the business ● Specific Insurance endorsement may be sought across the entire customer’s portfolio or specific business segments if deemed commercially feasible.
Risk appetite. <A risk appetite should be agreed with the SIRO/SRO and included here.>
