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 system of risk management and 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 processes of risk management and internal control 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.
Deploy site level risk management processes to ensure that risks are adequately identified and controlled.
IDENTIFYING AND MANAGING RISKS
The Group’s risk management process enables the business to identify, prioritise and mitigate risk. Specifically a Group risk register is in place generated from site risk registers owned by Operational Management and this also contains identified overarching Group risks which could have a significant impact on the business as a whole.
The Board formally reviews the Group risk register on at least an annual basis and in addition receives a quarterly update report on the risk profile facing the Group.
All business units and functions perform regular risk assessments that consider a range of risks and issues. Overall through this formalised process the principal risks are determined and subsequently agreed by the Board. For the year ended 31 March 2017 the risks facing the Group are broadly consistent with the previous year, with no significant changes identified.
However, following the integration of Crown Chicken into the Group, the business is mindful of the specific risks associated within poultry flocks, for example Avian Influenza and the overall importance of the poultry flock to the operations of the Group.
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.