How can a leader develop a risk-appetite? | business | Hindustan Times
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How can a leader develop a risk-appetite?

To be successful, a leader need to take more risk. However, while developing risk-appetite a leader needs to understand how much can he afford to take it.

business Updated: Aug 15, 2012 21:20 IST

To be successful, a leader need to take more risk. However, while developing risk-appetite a leader needs to understand how much can he afford to take it. This may look very difficult, but it’s simply a combination of desired goals in a limited time frame and the conviction of being successful.

A top-down approach, defining the risk and then sharing the same with key stakeholders is usually the best way to begin developing the risk-appetite. A top-down approach makes the requirements of the various external stakeholders explicit, stimulates debate in the executive team and identifies the key area of concern and the ways to tackle them. The process can also be used to engage the board and the directors on the subject. The result is a robust framework that can be used to articulate appetite throughout the group and to the external stakeholders.
(Pankaj Dubey, managing director, Polaris India)


Corporate leaders always need to manage their business with a strong entrepreneurial flair. With an entrepreneurial approach comes many risks but also many opportunities. Identifying opportunities and the risks, especially in this dynamic environment, is vital to a leader’s success.

Developing an opportunities’ appetite is more relevant than having a risk appetite in today’s context. With a challenging growth environment and strong corporate policies and governance, a good leader must continuously look at opportunities to succeed. However he must identify the risks, weighing them against the opportunity on offer. He must learn to work in a more collaborative fashion and use information and experience to mitigate the risk. Risk is an inherent part of opportunity and today we need leaders with a large opportunity appetite.
(Sunil Nayak, CEO Sodexo India On-site Service Solutions)