It is impossible for an organisation to have zero appetite for risks relating to governance, legislative compliance and workplace health and safety (WHS), yet at the same time a high risk appetite for research and development of new products and business models where the failure rate might be high, but the returns great.

Question

Quizplus · Accepted Answer

Organizations often have different levels of risk appetite for different areas of their operations. It's common for a company to be very risk-averse in areas like governance, legislative compliance, and workplace health and safety to ensure stability and compliance with laws, while being more willing to take risks in areas like research and development where innovation and potential high returns justify the higher risk of failure.

It Is Impossible for an Organisation to Have Zero Appetite