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KEY MITIGATIONS

Scottish Enterprise has comprehensive Medium-term Financial Strategy (2025-26 to 2027-28) and supporting action plan in place which incorporates targeted work to increase external funding and improve our longer-term financial resilience. Key elements of the Financial Strategy include:

• Developing options around our future financial model, including partnerships, new income and external funding streams and an in-depth review of resource expenditure.
• Exploration of opportunities to leverage additional private sector capital into Scotland to support the early-stage investment market.
• Rebalancing the asset base to reduce volatility and reliance on our financial asset portfolio for income generation.

This risk is also managed through:

• Regular financial monitoring and forecasting, including identification of measures that will reduce pressures on the resource budget.
• Refreshed approach to budget management to improve financial planning certainty.
• Reviewing our operating model to reduce costs where we can.
• Continued engagement with the Scottish Government including exploring opportunities for further flexibility in financial management arrangements, multi-year funding to support transformative economic development projects.