Episode 218 - Do you know your Companies Risk Appetite?

In this episode, Dr. Ayers challenges safety professionals to understand their organization’s true risk appetite — not the one written in policies, but the one revealed through decisions, priorities, and mixed messages from leadership.

He asks a pointed question: “Do you really know how much risk your company is willing to accept?”

  🧠 Key Themes 1. Mixed Messages Create Confusion

Dr. Ayers notes that many safety pros hear conflicting signals from management:

• “Safety is our top priority”…

• …but production pressure says otherwise. This disconnect makes it hard to know what leadership actually expects. Sources:

  2. Risk Appetite Drives Real‑World Decisions

A company’s risk appetite shows up in:

• How quickly they correct hazards

• How they respond to near misses

• Whether they invest in controls or delay them

• How they balance production vs. protection Sources:

  3. Safety Leaders Must Clarify Expectations

Dr. Ayers encourages safety professionals to:

• Ask direct questions

• Seek alignment with leadership

• Understand the boundaries of acceptable risk

• Communicate those boundaries clearly to employees Sources:

  4. You Can’t Lead Safety Without Knowing the Rules of the Game

If you don’t know your company’s risk appetite, you can’t:

• Prioritize effectively

• Make consistent decisions

• Set realistic expectations

• Build trust with the workforce Sources:

  🚀 Leadership Takeaways

• Mixed messages undermine safety — clarify them.

• Risk appetite is revealed through actions, not slogans.

• Safety leaders must understand leadership’s true tolerance for risk.

• Alignment creates consistency, trust, and better decisions.