Our robust risk management process ensures risks are identified, evaluated, monitored and controlled by our management team with oversight by the Board.
In order to gain an understanding of the risk exposure of the Group we review each area of our business annually and use a methodology that will assist the Group in measuring, evaluating, documenting and monitoring its risks within all areas of its operations.
We use our risk management process as described to identify, monitor, evaluate and escalate risks as they emerge, enabling management to take appropriate action wherever possible in order to control them and also enabling the Board to keep risk management under review.
During the year the Board also worked to define its appetite towards risk and metrics against which risk appetite can be monitored.
The risk factors addressed in our Annual Report are those which we believe to be the most material to our business model, which could adversely affect the operations, revenue, profit, cash flow or assets of the Group and which may prevent us from achieving the Group’s strategic objectives. Additional risks and uncertainties currently unknown to us, or which we currently believe are immaterial, may also have an adverse effect on the Group.
RESPONSIBILITY FOR RISK
The Board is ultimately responsible for ensuring that a robust risk management process is in place and effectively operated. The relevant roles and responsibilities in monitoring and operating the system of risk management are follows:
- promotes and supports the embedding of risk management throughout the business;
- ensures there is active management of identified and emerging risks;
- formally reviews the risk register on a regular basis;
- reports to the Audit and Risk Committee on the internal control environment.
- monitors and reviews the Group’s system of internal control and risk management;
- reviews the Group’s risk appetite;
- review the Group’s risk management framework;
- makes recommendations to the Board for improvements or developments.
- provides strategic direction on the appropriate balance between risk and return;
- sets the ‘tone’ and culture for managing risk and embedding sound risk management;
- ensures the most significant risks facing the organisation are properly managed;
- evaluates the risk implications of planned investments;
- plans for how the business would manage a crisis.
For more information, please read the Principal Risks and Uncertainties section of our Annual Report.