Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
Effective R&I funding demands comprehensive portfolio information to manage diverse risk levels.
Conclusion
To effectively manage R&I funding, it is crucial to have good information on what is being funded across a portfolio. Professor Boyle outlined the importance of needing high-risk, high reward research but also the need to support “winners” and low-risk, high-reward research.55 DSIT told us it expected multiple projects in the portfolio to outright fail or not achieve their original objectives, although these may still produce useful skill-building and side benefits.56
Government Response Summary
The government accepts the implied recommendation, stating it will incorporate NAO recommendations into UKRI's 2025 risk appetite statement review by February 2026. UKRI will also develop risk appetite guidance, provide training, establish a community of practice, review peer reviewer instructions, and evaluate learning from risk-taking.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Target implementation date: February 2026 5.2 DSIT developed a risk appetite statement in November 2024, which stated the department has both the opportunity and obligation to try approaches that may bring greater rewards, particularly where those approaches can act as trailblazers for other programmes. 5.3 UKRI has a long track record in supporting high-risk research as part of its overall portfolio. UKRI developed a risk appetite statement in 2021, which is reviewed biennially in line with UKRI’s Risk Management Policy. The risk appetite statement is a fundamental element of the Risk Management Framework and reviews are undertaken with teams across UKRI to ensure that risk appetite types and levels are effective. UKRI will incorporate the NAO’s recommendations into its 2025 review of its risk appetite statement, to be completed by February 2026. This will be closely monitored by DSIT. 5.4 UKRI will develop guidance for each risk appetite type to provide information on the risk appetite level and its implementation. UKRI will provide further support through training and its Risk and Assurance partnering team. 5.5 UKRI has also established a community of practice for staff delivering funding competitions, which will ensure the risk appetite for different stages in the funding process is actively communicated. UKRI will also review instructions for peer reviewers and grants panels to ensure they effectively consider UKRI’s risk appetite. 5.6 UKRI will, through the updated risk appetite statement, ensure that a new approach to learning from risk taking is evaluated as part of the management of our portfolio.