Risk management

The Group has a detailed ongoing risk management process for identifying, evaluating and managing the significant risks faced by the Company and embedding a risk awareness and management culture throughout the Group.

Risk assessment and evaluation function as an integral part of the Group’s annual strategic planning cycle and this includes the consideration of major business risks by senior management.

The risk management process comprises the following key elements:

• Group operating companies and key functions in the business carry out risk assessments, to determine the nature and extent of risks facing the Company;
• the Board undertakes a formal Group-wide risk review every six months, which is reviewed by the Board. Risk management is a formal item at each Board meeting;
• registers are produced which detail significant risks and indicate likelihood, impact, and the level of controls, together with mitigating actions;
• the profile of the significant risks from the registers are summarised and tracked using a consolidated risk map;
• senior management is accountable and responsible for managing risks within the Group, supported by dedicated risk managers. These risk managers assist in embedding risk management within the business culture via risk forums, team meetings, training sessions and the Company's intranet;
• the Internal Audit function also promotes effective risk management in the business' operations; and
• a fast track process for identifying and responding to evolving risks and significant changes to existing risks so that they are reported to an appropriate level of management and corrective action is taken.

Our risk-based approach to business helps us to define our appetite for different risks.

Each Board member is assigned responsibility to champion specific risks that have been identified as key risks for the company. Senior managers are assigned ownership of other risks that have been identified across the company. Risk management is part of every manager's job. Management of risks is included in our appraisal processes, where appropriate, which will ultimately influence salary and bonus payments.