Thursday, May 8, 2025

More Risk Appetite Isn’t Reckless—It’s Reality

9 May 2025:

Here’s something I’ve come to believe , "most businesses don’t struggle with risk itself they struggle with how people react to it".

We still associate visible risk with recklessness. But in reality, visibility is the first step toward progress. Surfacing risk early, talking about it openly, and acting on it that’s not a red flag. That’s maturity. That’s leadership.

According to the latest Gartner® report on risk analytics, 58% of boards expect to increase their risk appetite in 2024–2025. That’s not a theoretical shift it’s a real change in how business is being done. The idea that risk teams are here to slow things down is outdated. The best risk leaders I know are sharp, commercially minded, and focused on enabling the business not just protecting it.

This shift can feel uncomfortable at first. Suddenly, your risk register looks heavier. But that’s not because you’re taking on more risk it’s because you’re finally seeing what’s really there. You’re being honest. And that’s a good thing.

Too often, we throw controls at people who don’t feel safe to speak up. That’s not risk management,it’s performance art. A real risk culture isn’t built on templates or checklists. It’s built in conversations especially the uncomfortable ones. When someone says, this isn’t working, and leadership listens.

The goal isn’t to eliminate risk. It’s to understand it well enough to make bold, informed decisions. To balance growth and resilience. To lead with clarity, not fear.

I’ve seen it firsthand: when leaders welcome tough questions, when sales teams start raising red flags instead of avoiding them, when compliance isn’t just a gatekeeper but a thought partner that’s when the business starts to move with real confidence.

More risk appetite doesn’t mean we’re being careless. It means we’re being real. And that’s where smarter decisions begin.