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 right tone from the top and supports decision making.
Rotork is committed to innovation and sustainable growth. Our Purpose, ‘keeping the world flowing for future generations’, is reflected in how we review risks. We have embarked on our Growth Acceleration Programme, investing in technology, people, new products, new service infrastructure and an optimised operating footprint. Upholding Rotork’s core values will be a key driver of our future success. We are committed to generating stakeholder value and will only take considered risks that fulfil our strategic objectives and do not risk our financial stability.
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:
- Identify key decisions
- Evaluate decisions against risk appetite
- Review key risk indicators
- Review and update the risk appetite preferences
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.