The identification of risks and opportunities and the development of action plans to manage the risks and exploit the opportunities is an integral part of the business process, and a core activity throughout the Group.
The Board takes a proactive approach to risk management with the aim of protecting its employees and customers and safeguarding the interests of the Company and its shareholders.
As set out in the Corporate Governance section of our 2008 Annual Report, the Group has policies and procedures in place to ensure that risks are properly evaluated and managed at the appropriate level within the business.
The identification of risks and opportunities, the development of action plans to manage the risks and exploit the opportunities, and the continual monitoring of progress against agreed Key Performance Indicators (‘KPIs’) is an integral part of the business process, and a core activity throughout the Group.
Control is exercised at Group and business level through MAP, the Group’s Management and Performance framework, monthly monitoring of performance by comparison with budgets and forecasts and through regular business reviews with the Group Chief Executive and the Group Finance Director.
This is underpinned by a formal major risk assessment process which is an integral part of the annual business cycle. As part of the process, each of the Group’s businesses is required to identify and document major risks and appropriate mitigating activities and controls, and monitor and report to management on the effectiveness of these controls on a biannual basis. Senior managers are also required to sign biannual confirmations of compliance with key procedures and to report any breakdowns in, or exceptions to, these procedures. The results are reviewed by the Executive Committee and the Board.
The Group also has formal procedures in place, with clearly designated levels of authority, for approving acquisitions and other capital investments. This is supported by a post-investment review process for selected acquisitions and major items of capital expenditure.
The Risk and mitigation section sets out the principal risks and uncertainties facing the business at the date of this Report and the systems and processes the Group has in place to manage and mitigate these risks.
Find out more about the principal risks and uncertainties facing the business and what we are doing to mitigate them.
