Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Accepted
UKRI struggles to identify specific high-risk, high-reward projects in its current funding portfolio.
Recommendation
We asked UKRI if it could give us an example of a high-risk project it is supporting. UKRI gave us an example from past use of BBSRC funding where techniques were considered incredibly demanding at the time 55 Q 22 56 Q 58 57 C&AG’s Report, para 2.6 58 C&AG’s Report, para 14 59 Q 21-22 60 Q 59 61 Q 58 15 but are not used now as the science has moved on.62 We asked UKRI to give us its best example today of a high-risk, strategic and might fail project absolutely worth funding. UKRI told us of its cross council interdisciplinary responsive mode scheme, where it has set up specific funding to do interdisciplinary research that does not fit into any of the current research council remits, but it did not identify any individual high risk projects it is currently funding because of the potentially high rewards.63 We noted that it seemed the UKRI board does not have an active programme overseeing its high-risk programmes that may fail, which UKRI did not dispute, replying “No, it’s a chequerboard”.64 Scaling up commercially
Government Response Summary
The government accepts the recommendation, committing to incorporating NAO recommendations into UKRI's 2025 risk appetite statement review by February 2026. UKRI will also develop guidance, provide training, establish a community of practice, review instructions for peer reviewers, and evaluate a new approach to learning from risk.
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.