Risks & Uncertainties
TO MINIMISE THE IMPACT OF SPECIFIC RISKS ON THE GROUP’S OPERATIONS, FINANCIAL PERFORMANCE AND REPUTATION, IT IS CRITICAL THAT RISKS ARE IDENTIFIED AND MANAGED
RISK MANAGEMENT FRAMEWORK
The Group has embedded formal risk management processes in place to support the identification and management of risks across the business. The Board has overall responsibility for the establishment and oversight of the Group’s Risk Management Framework and Internal Control procedures.
A Group Risk Committee is in place, consisting of Senior Managers and chaired by the Finance Director which meets four times a year and provides oversight and advice to the Audit Committee and Board in relation to current and future risk exposures and risk mitigation strategies.
In addition, the Group has a well-established, effective Internal Audit function which reports directly to the Audit Committee and provides independent assurance that the Group’s risk management processes and key internal control procedures are operating effectively.
Responsible for the Group’s risk management framework, Internal Control, and for setting the Group’s overall risk appetite.
Reviews the systems of Internal Control that are in place and provides assurance to the Board that the risk management framework and Internal Controls are operating effectively.
Group Risk Committee
Provides oversight and advice to the Audit Committee and Board in relation to current and future risk exposures and risk mitigation strategies.
Group Internal Audit
Provides assurance to the Audit Committee and Board of Directors that Internal Controls are adequate and risk management processes are effective.
Deploy site level risk management processes to ensure that risks are adequately identified and controlled.
IDENTIFYING AND MANAGING RISKS
The Group’s Risk Management Framework enables the business to identify, prioritise and mitigate risks. A Group risk register is in place which captures overarching business risks together with detailed individual site risk registers owned by operational management. The Group undertakes reviews for new and emerging risks on a regular basis and implements appropriate mitigating actions as required.
The Group Risk Committee monitors these processes, reviews the risk registers and reports significant risks to the Audit Committee. The Board receives a quarterly update report on the risk profile facing the Group and formally reviews the key risks facing the business at least once a year. Through this formalised process the principal risks are determined and subsequently agreed by the Board.
The risks facing the Group are broadly consistent with the previous year, with no significant changes identified. However, in common with other businesses, Brexit continues to be an area of focus for the Group. There are specific areas where over the short to medium-term Brexit could potentially impact upon the Group to include; the availability and cost of labour, volatility in Sterling and a downturn in overall consumer demand. Senior management and the Board will continue to closely monitor Brexit negotiations and make adjustments to the Group’s strategic plan as necessary.
PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties facing the Group are summarised here.
However, these are not intended to be an exhaustive analysis of all risks currently facing the Group.