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Strategic Report
Statement of Principal Risks and Uncertainties
Key business risks are currently identified as follows:
Risk and Impact
Mitigation / Controls
1. Strategic There is a risk that the Group strategy does not deliver sustainable business growth and profits.
The Board reviews business strategy, annual budgets and longer-term financial plans regularly, to ensure the business has the resources to provide value for all its stakeholders. The Board invests significant time into formulating, reviewing and communicating strategy to ensure that our approach continues to deliver sustainable returns. The governance of the business is reviewed, with continuous investments in the strengthening and development of management teams.
2. Financial Failure of the business to deliver the cash flows forecasted, inherent currency and inflationary risks and management of those risks, bank calls on facilities, requirements for further funding for the pension fund; customer and supplier credit risk; losses arising from fraudulent and dishonest activity.
Treasury strategy is defined within the annual accounts and we have worked to formulate the supporting policies and procedures. Management review cashflow regularly to ensure the business has access to the funds required to continue with its operations. The Group maintains a dialogue with its lenders to ensure that it has adequate mediumterm financing in place to support its business operations for the foreseeable future. Loan covenants are regularly monitored. Hedging activity is undertaken to mitigate the FX exposures. Within the budgeting process increases in input prices due to inflation is modelled and flows through to the sale prices offered to our customers. The Group reviews options regarding the actions it can take to mitigate its long-term pension risk and consults professional advisors as necessary. There is a whistleblowing policy in place enabling employees to raise fraudulent or dishonest activity.
3. People The inherent risk of ensuring the business continues to retain and attract the required talent to sustain and improve the business.
The business has robust policies and procedures in place for recruiting individuals into the business and retention of key employees is important for long term stability and success. Training and mentoring is provided for employees to ensure they can both fulfil their potential and support business success. Training provision is assessed and developed to align with employee development and business requirement. We have a well-defined and published set of values and how this supports our wider company culture, to make it an attractive place for people to work Performance reviews are conducted regularly across the business to identify development needs and career opportunities aligned to business needs. Workforce planning and succession planning is undertaken to ensure that the right individuals are in the right roles.
Annual Report and Accounts
