Risk appetite framework

The Board is responsible for determining the nature and extent of the risks we are willing to take in achieving our strategic objectives. Our Group risk appetite statement sets the tone from the top and supports decision making to mitigate, control or accept risks.

Risk appetite

Our purpose, ‘keeping the world flowing for future generations’, is embedded in the way that we assess risk. We are committed to generating stakeholder value through innovation and sustainable growth and will only take considered risks that align with our strategic objectives and established risk appetite.

The Board reviews the risk appetite framework to assess the impact of changes in both the internal and external environment. The Board also reviews how risk appetite statements are applied by monitoring the Key Risk Indicators which are presented to the Board twice a year.  
 

Principal risks and uncertainties

The following are considered the principal risks and uncertainties facing the Group. The list of principal risks and uncertainties selected are the result of a robust, top-down and bottom-up risk assessment. The assessment includes those risks that would threaten the Group's business model, future performance, solvency or liquidity. Further details on how Rotork manages risk are set out on pages 58 to 66 of the Annual Report.