Office for Nuclear Regulation

Risk management

We manage risk through our directorates and divisions, with clear lines of executive accountability and regular review and challenge by our Risk Improvement Group and Senior Leadership Team. Our Audit and Risk Assurance Committee (ARAC) and Board provide scrutiny and we put new controls and mitigations in place where necessary to address our risks.

Our appetite for particular risk areas depends on factors such as the likelihood of the risk occurring and the potential impact of the risk (before and after controls) on our strategic objectives. We also consider the interdependencies in our risk appetite across our functional areas, taking account of the cumulative impact that may manifest as a result.

Our risk appetite statement is reviewed annually by our board and provides the context for making well considered decisions in particular areas. Our board expects decisions to be taken in line with the appetite it has determined. Where appropriate, we have assigned a classification in line with the Treasury risk appetite definitions listed below.

Classification Description
Averse Avoidance of risk and uncertainty in achievement of key deliverables or initiatives is paramount.
Activities undertaken will only be those considered to carry virtually no inherent risk.
Minimalist Predilection to undertake activities considered to be very safe in the achievement of key deliverables or initiatives.
Activities will only be taken where they have a low degree of inherent risk. The associated potential for reward/pursuit of opportunity is not a key driver in selecting activities.
Cautious Willing to accept/tolerate a degree of risk in selecting which activities to undertake to achieve key deliverables or initiatives, where we have identified scope to achieve significant reward and/or realise an opportunity.
Activities undertaken may carry a high degree of inherent risk that is deemed controllable to a large extent.
Open Undertakes activities by seeking to achieve a balance between a high likelihood of successful delivery and a high degree of reward and value for money.
Activities themselves may potentially carry, or contribute to, a high degree of residual risk.
Hungry Eager to be innovative and choose activities that focus on maximising opportunities (additional benefits and goals) and offering potentially very high reward, even if these activities carry a very high residual risk.