The Group faces a variety of risks and uncertainties and effective management of these risks supports the delivery of our strategic objectives. Risk management is based on a balance of risk and reward. This balance is established through an assessment of the likelihood and impact, as well as consideration of the Group’s risk appetite.
The Group has a mature and effective risk management framework in place to identify, assess, mitigate, and monitor risks facing the business. The risk management framework incorporates both a top-down approach to identifying our principal risks, and a bottom-up approach to identifying our operational risks.
During the year the Board receives regular risk updates. These include the emerging risks facing the Group, an understanding of risk trends and the status of mitigating actions adopted. The Board also performs an annual review of the principal risks facing the Group and risks in the intervening periods are reviewed by the Group Risk Committee.
The Audit Committee gains assurance over the effectiveness of the Group’s risk management framework, governance and internal control procedures through the established in-house Internal Audit team. During the year, the Internal Audit team reported no significant
failings or weaknesses in the systems of risk management or internal control.
Whilst the Board has the overall responsibility for the risk management framework, this responsibility is delegated to the Group Risk Committee, which is chaired by the Chief Financial Officer and consists of key internal stakeholders. During the year, the Group Risk Committee has met four times and has discussed a range of issues. These include emerging risks, the detail and consistency of individual site risk registers and the adequacy of site business continuity plans.
PRINCIPAL RISKS AND UNCERTAINTIES
The Board has carried out a robust assessment of the principal risks facing the Group. These include risks that would threaten its business model, future performance, solvency, or liquidity. The Group is exposed to a variety of risks, however, in common with other businesses, only reports on those risks with
a higher likelihood and greater current or near-term impact on strategic objectives, operational plans, or reputation. During the year COVID-19 risks have been regularly discussed in detail and have now been incorporated within a new principal risk.
The principal risks and uncertainties facing the Group are summarised here.