Transcript
SPEAKER 1
Risk management can scale up and down depending on the size of your business or organisation. What's suitable for a FTSE 100 business under the Corporate Governance Code for the UK is not suitable for a small, owner-managed business. It's about making sure you understand what those risks are that you face as a business and then taking action accordingly.
That may be there's a formal risk register, at a point that you need to go and maybe take some capital or some investment into the business, or it may be to avoid getting hit by incidents, you might have had experience with incidents in the past. And actually, you want to understand how to avoid those incidents in the future.
SPEAKER 2
It's always really challenging to know at what point do you start to put more deeper consideration of risk in place. Because what you don't want to do is stop the pace of those really exciting opportunities. But at the same time, it really comes back to what we call risk appetite. How much are we prepared to take on in terms of the risks that we face?
What can we afford to lose, potentially, if some of those risks happen? And how do we make sure that we have the right conversations happening at the right time so that we are moving forward to go for those really exciting opportunities, but at the same time, we're not doing that at any cost and taking all sorts of risks onboard?
Generally, I would have said if it's really thinking about ideas, that probably isn't the time to be putting really structured risk management in place. But as soon as you're starting to make some external commitments, you're starting to get stakeholders onboard, to give those stakeholders confidence that actually, you're thinking things through, you're thinking about what could happen, and any kind of events that could mean that those objectives that you really want to achieve might not be achieved, that's really probably the time to be putting some good, structured risk management in place. But it's really about the type of organisation and the type of people.