Risk appetite framework
The Board is responsible for determining the nature and extent of the risks it is willing to take in achieving our strategic objectives. Our Group risk appetite statement sets the tone from the top and supports decision making.
Rotork’s Purpose, ‘keeping the world flowing for future generations’, is reflected in how we review risks. We are committed to generating stakeholder value through innovation and sustainable growth and will only take considered risks that fulfil our strategic objectives and do not risk our Values or financial stability. Upholding Rotork’s core Values and maintaining the resilience shown during 2020 will be key drivers of our future success.
The risk appetite framework provides qualitative and quantitative insight on risks and supports proactive mitigation planning. The risk appetite framework consists of the following steps:
- Review and update the risk appetite preferences
- Identify key decisions
- Evaluate decisions against risk appetite
- Review key risk indicators
The following are considered the principal risks facing the Group and are the result of the robust, top down and bottom up risk assessment process previously described. It includes those risks that would threaten the Group's business model, future performance, solvency or liquidity.