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Are you a risk taker or just reckless?
Not understanding the types and size of corporate risks means you are reckless, not a risk taker. Risk takers accept and manage corporate risks after careful assessment. Once their risk knowledge is enhanced they take decisions that on the balance will bring the reward they want. The risk they need to take to receive that level of reward is acceptable. To others it maybe unacceptable, but they is irrelevant.Whats important is that you take risks in the full knowledge of the level of risk you are taking not just crossing your fingers and hoping for the best.
To build a more certain future for your business you need to determine your risk tolerance and set your risk management strategy accordingly.
Using a risk based decision strategy for your business can be more productive. It can also maximise your business performance by targeting the highest reward return based on the highest level of risk you can tolerate. If you and your business have a low risk tolerance then it is crucial not to overstretch your assets as this could result in disastrous collapse of your business.
Risk Appetite is something different. Your risk appetite should be less than your risk tolerance. Building in headroom between risk appetite and risk tolerance will build in a safety buffer or margin for your business so that you can flex-up should you need to in order to seize new business opportunities. The buffer will also provide some protection against changes in external risk drivers you may have no control of but can absorb in your margin between risk appetite and risk tolerance.
Risk Appetite is the total impact of risk an organisation is prepared to accept in the pursuit of business objectives. Internal and external risk factors will drive your risk perception and attitude to risk.
Risk appetites may vary across the whole business depending on the risk perceptions and risk attitudes of senior managers executives risk owners and risk control managers. Their risk perceptions and risk attitudes may change the level of risk business is exposed to including taking too much or too little risk to achieve business objectives.
Risk appetites and risk attitudes can change depending on the experience of persons responsible for risks. If you have skilled and experienced employees they may have a different perception and attitude to risks and this changes how a business responds to risks. Emerging risks or existing risks that are changing may mean experienced and trained employees need regularly skills development and business intelligence building opportunities to grow their risk knowledge.
The type of risk may change risk appetite and risk tolerance. The risk perception of the impact on business may be accurate or inaccurate but can dramatically change risk appetite and risk tolerance.
There is no right or wrong decision on risk appetite and risk tolerance. However this is a major area which must be addressed in the risk assessment process otherwise the business maybe under performing and not getting the most out of its assets..
The risk appetite statement needs to be regularly reviewed in the light of changes to internal and external risk factors to ensure it still reflects immediate medium and long term risk appetite and risk tolerance evaluations. It also needs to be reviewed when business objectives are missed or achieved and risk control measures effectiveness change.
Risk appetite and risk tolerance statement needs to cover all significant risk classifications impacting on business objectives. Our holistic risk management approach links risk appetite and risk tolerance to overall business strategy.
Define business objectives. What are your objectives in respect of market share growth governance branding reputation compliance profitability etc? Why are these objectives the most important to key organisation stakeholders? What is that these stakeholders expect from the business and how will their expectations be managed? Whether objectives are SMART should be explored. The objectives themselves may need to change if they are not SMART. Do not try to manage risks from business objectives that are not SMART as you are probably setting yourself up for failure from the outset.
Align enterprise risk profile to the business plan. What are the significant risks that may prevent the achievement of business objectives? What are the significant rewards that could be achieved if the risks impacting on the opportunities are managed well? Measure the risks holistically to identify the net benefits and drawbacks using risk assessment process. Use risk assessment process to better understand current risk taking capacity. Consider the risk headroom you have that gives you flexibility or makes your business more fragile to risk exposure as this may influence attitude to risk taking. Be clear about Red Lines where you have zero tolerance risk exposures. Where you can tolerate risk what is the bottom line risk tolerance exposure level across which you will never want to cross regardless of potential rewards. Clearly defining business objectives risk tolerance risk appetite and risk headroom will give you a firm foundation for the level of risk you want to take to achieve business objectives.
Identify risk tolerance ranges for specific risks. Your risk appetite must not cut across your Red Line risk tolerance levels for each type of risk. Risk tolerance threshold is a key element of aligning a more risk based business strategy. If more risk taking is envisaged then extra risk monitoring measures maybe needed to control the risk exposure more dynamically. This will give you more opportunities to correct business risk management for improved performance over the longer term. It is crucial that all levels of the organisation are involved in risk reporting and monitoring to embed more responsive risk management strategy. Risk tolerance thresholds should be very specific and measurable so that it is clear where the organisation stands at any time in terms of risk exposure.
Risk Rating lower than Risk Appetite should trigger risk management review to identify if organisation could make changes to boost performance.
It should be remembered that the closer the organisation gets to optimal performance the more exposed to risk the organisation gets. Risk events when working at optimal performance are harder to overcome than when there is more headroom in the risk management system.
Inherent risk is the risk faced without any mitigation or control measures. Residual risk is the risk faced after mitigation or control measures have been taken into account.
Residual risk levels can be higher or lower if the persons completing the risk assessment process have different skills experience or attitude to risks. Residual risk levels arrived at by the organisation need to take into account Risk Perceptions.
The more control over risk a person has the more confident they are that the risk is under control. They may perceive risks they have control over as lower risks. They maybe overconfident on their ability to control the risk. The residual risk could therefore be higher than recorded on the risk register for example.
On the flip side lack of control over a risk may lower the risk assessors risk tolerance. This may reduce business performance. Maybe increased training and risk information can change risk perceptions of risk assessors. An organisation could take on more risk with more confidence without really increasing corporate risk tolerance.
Involving people outside of the organisation can bring fresh eyes or a different outlook on corporate risks. This could change risk assessors risk perceptions to improve business performance and build business resilience.Welcome to the Ogmore Angling Association
Junior comp and clean up images in News
2015 Renewal form and New Member form here streams in the hills to the estuary. Our lower beats are distinguished by populations of bass, mullet and flounder. Such a variety of species and habitats offer unrivalled sport to the discerning angler and this broad diversity ensures the chance to fish club waters no matter what conditions prevail.. well, almost!
We hope the website will be a useful resource to members and visiting anglers alike, it contains an active forum for sharing up to date chat and the site itself gives you all the information you need to keep up with club news and events.
Wishing you fair weather, good water and tight lines for the 2014 season.
Last update - 24th June, 2015.Two huge milestones were celebrated at the last Court of Honor of Northville Boy Scout Troop 755 earlier this month: the troop’s 70th anniversary and one of the troop’s former leaders is 100 years old — and both are still going strong. The troop honored Warren Stoddard with a birthday cake topped by “100” in numeral candles and with a miniature birch bark canoe. After reflecting at the podium on his years in scouting, Stoddard got a standing ovation from the leaders, parents and scouts.
Troop 755, sponsored by the First Presbyterian Church of Northville, has more than 190 registered Boy Scouts (ages 10-18), more than 90 registered leaders and, so far, has engendered 236 Eagle Scouts. It is the largest scout troop in the state of Michigan and is reputed to be the largest east of the Mississippi River.
Born Dec. 9, 1916, Stoddard has the troop beat by just over 30 years. In 1963, Stoddard had no intentions of being a scout leader; he hadn’t even been a Boy Scout as a youth. At that time, he was chair of the First Presbyterian Church of Northville’s board of trustees and word got around that the scout troop was in need of more leaders. After not being able to identify anyone to take on the responsibility and his son getting to be scouting age, Stoddard decided that he would step up himself, so he became an assistant scoutmaster.
The scoutmaster at the time was Bill Thomas, who was quite the character in his own right. He had an old car that was actually louder than the boys themselves because it needed a new muffler and, every time the car started or stopped, the front seat would rock backward or forward somewhat. But that was before permission slips, driver’s license registrations, proof of insurance and other certifications that Boy Scouts now requires to drive the scouts to and from camp, so it wasn’t a problem.
In 1964, in addition to the regular meetings and campouts, Thomas and Stoddard started the series of wilderness Canadian canoe trips up to northern Ontario, which would go on into the 1990s. That’s where you don’t see another sign of civilization for the five days that you’re on the river. Stoddard figures he has gone on about 15 Canadian