Investor Relations
Management of Risk

The Board attaches considerable importance to systems of internal control and risk management and acknowledges responsibility for them and for reviewing their effectiveness.

The Board’s policy is to have systems in place that optimise the Group’s ability to manage risk. Responsibilities for identifying, evaluating, monitoring and managing risks have been delegated to the Executive Directors. These are discussed at Operating Review Meetings to enable Executive Directors to advise the Board of any issues or new risks.

Processes are in place to assess strategic, commercial and financial risks and how these are monitored, managed and controlled. Group businesses review risks and a report on the principal risks the Group faces is considered by the Board at least twice a year. Health and safety risks are assessed by external consultants, who with the Group’s insurance brokers and risk management consultants, ensure each business is aware of and trained in health and safety matters. Health and safety reviews are carried out and reported monthly and annual risk reviews are undertaken at each subsidiary.

The Board reviews the effectiveness of internal control and management systems by:

  • Considering Group strategy and approving an annual budget and medium-term projections.
  • Regularly reviewing operational performance and forecasts.
  • Retaining responsibility for acquisition, divestment and major capital expenditure and financing arrangements.
  • Reviewing the Group’s pension arrangements, insurance and risk management programmes.
  • Receiving regular reports on environmental and health and safety matters.
  • Reviewing at least annually key management development and succession plans.
  • Receiving regular reports from the Audit Committee on the effectiveness of internal systems.