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Legal environment

RISK

The number, significance, complexity, uncertainty, and volatility of legal requirements facing Scottish Enterprise are relatively high and expected to increase. This is attributable not only to the external legal environment but also strategy-driven changes in delivery mechanisms to maximize economic impacts.

The scale of inputs required to ensure compliance with legal requirements is accordingly relatively high and expected to increase. This risks overall increased overhead and delivery time and cost, which in turn could negatively affect SE's effectiveness and reputation.

This risk has been a principal risk for Scottish Enterprise throughout 2025-26.

KEY MITIGATIONS

• We have defined our legal risk appetite as part of our risk management decision making framework.
• Ongoing horizon scanning of the legal environment to monitor and respond to legal developments.
• Strategic insights work to identify the major trends and movements that are shaping Scotland's economy and might impact on our strategic direction and focus.

Climate related risks

Scottish Enterprise considers climate related risks as part of its overall risk management arrangements. Where identified, these are recorded within the relevant risk register(s) and are assessed and managed in line with the Risk Management Policy, including evaluation of their likelihood and potential impact.

'Climate and Sustainability' is one of Scottish Enterprise's ten risk categories which reflect our principal sources of risk. The Board has set an 'open' risk appetite for climate-related risks, recognising the need for Scottish Enterprise to make a significant, sustainable contribution to addressing the climate emergency. In this context, the Board is willing to take considered risks on unique and innovative approaches that will help to address the significant challenge of climate change. However, the Board has no appetite for any risks that may create a long-term environmental damage or which may exacerbate climate impacts.