RISK APPETITE STATEMENT

OUR VISION is to be Australia’s most accessible, supportive and engaged university, recognised globally for
innovative teaching and research excellence.
OUR PURPOSE is to provide world-class, transformative education and research for our students, partners and
communities across Australia and internationally.
OUR VALUES - Engagement, Can Do, Openness, Leadership, and Inclusiveness.

RISK This risk appetite for CQUniversity outlines where we are willing to engage with higher levels of risk for a greater benefit and
APPETITE to achieve our strategic goals. Understanding our risk appetite assists in decision-making across the University but may vary
between work areas, depending on the work being carried out.
The University’s approach is to minimise our exposure to risks relating to our compliance responsibilities, environment, safety
OVERALL and culture, whilst accepting and supporting an increased degree of risk in pursuit of our vision and strategic goals as set out
RISK APPETITE in the Our Future Is You Strategic Plan (2019-2023). It recognises that our appetite for risk varies according to the activity
STATEMENT undertaken, and that our acceptance of risk is subject always to ensuring that the potential benefits and risks are fully
understood before developments are authorised, and that sensible measures to mitigate risk are established where required.
 The Risk Appetite Statement is not an exhaustive list that addresses every situation but provides general guidelines.
 Everyone is empowered to interpret the Risk Appetite Statement to make pragmatic, risk-based decisions in the best
RISK APPETITE interest of the University and its stakeholders.
STATEMENT  The Risk Appetite Statement is a forward-looking expression of risk appetite. It reflects our tolerance for accepting new
PARAMETERS or developing risks (in addition to current risks) in achieving the University’s strategic goals.
 Our risk appetite and risk tolerance are dynamic and will change over time in response to different risk drivers.
 All decisions align with the University’s Strategic Plan, Vision, Purpose and Values.

RISK APPETITE SUMMARY

Extent of Risk Appetite Risk Tolerance Level Risk Approach Risk Driver
High Appetite (Open)
CQU will operate in this area or in this way after all options High Entrepreneurial  Strategic growth
are considered and the most appropriate option selected Innovate  Research
for an acceptable level of reward or value for money. Venture  Student learning and
Willingness to take on risk for an acceptable level of Explore engagement
reward.
Moderate Appetite (Acceptable)
CQU will operate in this area or this way after risks have Moderate Balanced  Reputation
been effectively mitigated in order to pursue opportunities. Medium Informed  Financial
This is generally adopted for corporate and management Confident sustainability and
activities. commercialisation
Willingness to take on a moderate level of risk.
Low Appetite (Tolerable)
CQU may operate in this area or in this way where the Limited Conservative  People
value is assessed as worthwhile, and only after risks have Low Cautious  Business disruption,
been effectively mitigated or uncertainty minimised. This is Minimalist systems security and
adopted for core business activities and for activities in assets
pursuing strategic objectives.  Environmental
Willingness to take on a limited level of risk. Sustainability
Minimal Appetite (Unacceptable)
CQU will avoid operating in this area or in this way where Minimal Avoid  Culture and values
there is any potential to compromise the University. All to Zero Averse  Health and safety
reasonably practicable measures to eliminate the risk must No compromise  Legal, compliance
be taken. This is adopted for regulatory activities and mis- and regulatory
compliance.
No willingness to take on any risk.

Council approval: TBA Page 1 of 3

 Risk Driver Risk Appetite Position Statement Risk Tolerance Measure
Strategic growth CQU must be willing to take and accept risk in order to achieve our strategic plan, and adapt to By 2023: CQU will deliver on our
changes in the technological environment, and in the nature and conduct of our activities. strategic plan, with:
 There is a high appetite to undertake transformation projects to enhance our teaching,  No significant under
learning, research and business development activities that achieves high growth outcomes. achievement or major delay
 There is a high appetite for innovation through technology and digital transformation projects in achieving objectives.
that supports changes in regulatory, student expectations, competition, and in the conduct of
our activities.
Research CQU is committed to performance-driven progress and ambitious research activities about  No significant continuous
growing research productivity, impact and knowledge exchange. attention/concern from the
 There is a high appetite for pursing research opportunities to strengthen performance. public, national media or
 There is a high appetite for activities to support growth in our RHD student load. stakeholders.
HIGH

 There is a high appetite for development of focussed Intellectual Property.  By 2023: Increase external
research income to $24.8m.
Developing research activities is subject to maintaining exemplary quality and ethical standards.  By 2023: Grow RHD
student load to 350 EFTSL.
Student learning CQU is committed to delivering high-quality student learning experiences, as well as developing  No significant continuous
and engagement enhanced approaches to learning and teaching. attention/concern from the
 There is a high appetite for providing high-quality courses and for being innovative in the public, national media or
delivery of courses and online learning that involves having a curriculum which is relevant to stakeholders.
current employment and industry needs.  By 2023: Increase student
 There is a high appetite for activities that play a part in helping students to access and numbers to 18,672 EFTSL.
participate fully in their university experience, succeed in their learning endeavours, and  By 2023: Achieve an 80%
importantly complete their studies. overall student experience
result.
Reputation CQU ranks among some of the world’s best universities. Our commitment to providing high-quality  No extended negative
support, facilities and resources leads to excellent student experience results. attention/concern from the
 There is a moderate appetite for activities that could potentially maintain or increase the public, State media or
MODERATE

value of our reputational standing (events that reinforce, sustain, or improve our reputation). stakeholders.
Financial CQU needs to remain a competitive, efficient and financially sustainable organisation, and aims to  Maintain a current ratio of
sustainability and maintain our long-term financial viability and our overall financial strength. >1.0 or more favourable.
commercialisation  There is a moderate appetite for actions that support the pursuit of expansion in our student  By 2023: Achieve a 10%
load, both domestic and internationally, while looking at areas for efficiency. EBITDA turnover target.
 There is a moderate appetite for being more commercially adept and explore avenues to
diversify revenue streams through commercially viable arrangements and partnerships.
People CQU is committed to investing in strategies to attract, manage, motivate, develop and retain  No increased turnover of
competent staff to achieve our strategic goals. personnel or absenteeism
 There is a low appetite for activities that threaten to diminish our ability to meet this of >5% but <10%.
commitment.  Maintain an 86% overall
staff satisfaction rating.
Business CQU places great importance on ensuring our activities and services operate efficiently and  No loss of critical systems
disruption, effectively. leading to business
systems security,  There is a low appetite for any business interruptions that may jeopardise our standards of disruption (<8 hours).
LOW

and assets operations or could lead to a loss of confidence by our stakeholders, communities, or key  Zero instances of failure to
government agencies. report and investigate data
 There is a low appetite for the compromise of personal information or systems security. security breaches.
 There is a low appetite for substandard campuses and associated facilities infrastructure  Maintain a 0.95 Facility
that do not meet functionality, condition, operation, compliance and financial performance. Condition Index.
Environmental CQU has a strong interest in protecting and preserving the environment and is committed to  By 2023: Reduce energy
sustainability making a significant sustainable and responsible contribution through environmental planning. usage by 20%.
 There is a low appetite for activities which will significantly degrade the environment.
Culture and CQU is driven by our values and fosters a culture of support, kindness, inclusive decision making  Maintain an 86% overall
values and robust intellectual inquiry within the framework of ethical behaviour. staff satisfaction rating.
 There is a minimal appetite for changes to our values and culture.
 There is a minimal appetite for conduct non-congruent to our values.
Health and safety CQU is committed to creating a safe working environment for staff, students and visitors where  Zero Notifiable Incidents as
people are protected from physical and psychological harm. classified by Work Health
 There is a minimal appetite for staff or student behaviour or misconduct threatening the and Safety Act 2011.
health and wellbeing of our staff, students or visitors.  Workers Compensation
MINIMAL

 There is no appetite for loss of life or serious harm to individuals. claim cost and claim
 There is no appetite for any deviations from our standards and legislative responsibilities in duration under industry
work health and safety. average as reported by
WorkCover.
Legal, CQU is committed to high standards of integrity, compliance, health and safety, and ethical  Zero instances of failure to
compliance and behaviour. report and investigate non-
regulatory  There is a minimal appetite for activities that do not support regulatory compliance. compliance breaches.
 There is a minimal appetite for activities that might put course accreditation and University  Zero instances of failure to
provider registration at risk. report and investigate
 There is no appetite for bribery and other forms of corruption, or fraud by individuals, or in suspected and actual
systems and processes, or actions that breaches any law. material fraud and theft.

Council approval: 20/08/2020 Page 2 of 3

 STRATEGIC PLAN RISK APPETITE SUMMARY
Our Our Our Our Our Our
Range Key Activities Students Research People Communities Reputation Sustainability
Learning and teaching innovation 
Online distance learning capabilities 
Research collaboration and partnership  
Entrepreneurial and impactful research  
HIGH

Commercial and diversified revenue 

Financial stewardship 
Access, participation, support and wellbeing 
Industry input into curriculum  
Organisational change to optimise performance   
Research Higher Degree training 
Talented and skilled staff  
Research talent 
MODERATE

Indigenous engagement 
Graduate outcomes and employability 
Engaged and future-focussed staff  
Community engagement and industry  
partnership
Student diversity 
Social innovation 
Philanthropic activity 
Poor (fit for purpose) facilities infrastructure   
Environmental impact 
Enhancing the University standings 
LOW

Government relations impact  

Cyber security threats 
Critical business disruption 
Poor staff performance 
Academic standards and integrity breaches 
Changes to values and culture 
MINIMAL

Reputation and brand impact 

Non-compliance with legislation 
Research ethics and misconduct 
Safety and wellbeing 
Fraud and inappropriate behaviour 

Risk management system

IMPLEMENTATION  The Risk Appetite Statement forms part of the University’s risk management system, and therefore should be read in
OF THE conjunction with the Risk Management Policy and the Enterprise Risk Management Framework.
UNIVERSITY’S
Responsibility
RISK APPETITE
 All Senior Executive and Senior Staff are responsible for the implementation of, and compliance with, this Risk
Appetite Statement.
 All Senior Staff are delegated responsibility to manage their specific risks in a manner which is consistent with this
Statement and appropriately escalating any risks outside appetite or agreed tolerance levels.
Communication
 The University’s Risk Appetite Statement is to be published on the University StaffNet and University website.
Confirmation and review
 This Risk Appetite Statement has been considered by the University Council sub-committee of Audit, Risk and
Finance, and is formally evaluated and approved each year by this Committee and Council.
 This Risk Appetite Statement is reviewed and coordinated by the Vice-President (Student and Corporate Services).

Council approval: 20/08/2020 Page 3 of 3