Our risk management strategy supports our ability to respond to the changing needs of our stakeholders and dynamics of the markets in which we operate. The purpose of our risk management strategy is to identify risk which could impact the delivery of our strategic objectives and mitigate these to an acceptable level.

There is a formal governance structure underpinning our approach to risk management. Key roles and responsibilities within the structure are as follows:

Identification of risks

The Board and the Group’s management have responsibility for identifying the major business risks facing the Group and for developing systems to mitigate and manage those risks. The control of key risks is reviewed by the Board and the Regional Executive Teams at their monthly meetings.

The Group risk register comprises risks identified and owned at the business unit level by the Regional Executive Teams. These are given a risk score and incorporated into the Plc risk register where the Group Wide impact and effectiveness of any mitigation is assessed by internal audit. These risks are subsequently aligned with the principal risk register and are categorised as strategic, financial or operational risks.

The Board oversees the ongoing process for identifying, evaluating and managing the significant risks faced by the Group and that it has been in place for the year under review and up to the date of approval of this annual report and accords with corporate governance guidance and therefore the Board has performed a robust assessment of the principal risks facing the Group.

Risk appetite

The Board maintains a focus on effective risk management which cascades all the way through the organisation. The culture of the organisation ensures that all activities from day-to-day operations to high level strategic decisions are performed in line with this approach.

The Board’s assessment of our principal risks is based on the perceived impact on our ability to deliver our strategic objectives and likelihood of occurrence.

The governance of risk is undertaken in the context of the Group’s overall risk appetite. The Group considers risk appetite to ensure adequate resources are allocated to the correct risks.