Of course, shareholders are stakeholders and are primarily the ones who will lose if the company makes a serious error in risk assessment and are also likely to have considerable power to act – even if only by selling shares in companies they are uncomfortable with. However, the term stakeholders can also be used to extend the family of those who might be concerned with risk appetite. For example, consider an aircraft manufacturer where passengers (customers and connected stakeholders) might have their own views on safety that might diverge from the views of shareholders. They might refuse to fly in certain aircraft. Or, people living locally to a factory might have views on the safety of gas emissions.

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Ken Garrett says
December 2, 2020 at 9:03 am
Of course, shareholders are stakeholders and are primarily the ones who will lose if the company makes a serious error in risk assessment and are also likely to have considerable power to act – even if only by selling shares in companies they are uncomfortable with. However, the term stakeholders can also be used to extend the family of those who might be concerned with risk appetite. For example, consider an aircraft manufacturer where passengers (customers and connected stakeholders) might have their own views on safety that might diverge from the views of shareholders. They might refuse to fly in certain aircraft. Or, people living locally to a factory might have views on the safety of gas emissions.
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Spiro says
December 1, 2020 at 9:06 pm
Regarding risk appetite, would you clarify whether shareholder or stakeholder’s attitude to risk is one of the factors. In the lecture Mr Garrett speaks about shareholders, while in the notes the stakeholders are pointed. Shareholders as company owners seem more reasonable, but please clarify.
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