ESG 23 Final Single pages - Flipbook - Page 66
MANAGING RISKS
Identifying and managing risks are key to our business to
protect the business, our people, our communities as well
as deliver long-term shareholder value.
The Board routinely monitors risks that could materially
and adversely a昀昀ect the Group’s ability to achieve
strategic goals, its 昀椀nancial condition and the results
of its operations. The Board is supported by senior
management personnel who collectively play a key role in
risk management and regularly report to the Board.
Ten of our twelve principal business risks are relevant to
ESG, and these are set out in the table on the below.
In addition to these known principal risks, we continue
to identify and analyse emerging ones including those
related to ESG, such as climate risks. We are a supporter
of the Task Force on Climate-related Financial Disclosures
(TCFD) (see pages 74 to 86) and the SASB Standards
reporting framework to report on material issues
(see pages 70 to 73).
Principal risk
Related ESG topic/sustainable
business priority
Competitive risk
Community – on-time delivery, right
昀椀rst time, innovating and inspiring
our clients
Geopolitical
Our people and communities –
potential to impact all – health,
safety and well-being of our people
and communities
Failure to attract,
engage, retain and
develop key talent
Our people – inspiring, rewarding
and supporting our people
Failure to manage
data-privacy
requirements and
expectations
Governance – treating data with
care and due diligence
Cyber security
Governance – treating data with
care and due diligence
Failure to deliver
transformation
programme
Community – potential to impact all
New technology and
AI
Governance – harness innovation
and e昀케ciencies
Failure to deliver
pro昀椀table growth
Our people and communities –
potential to impact all
Legislative/regulatory Governance – potential to impact all
compliance risk
Climate change and
natural disasters
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Environment – potential to impact
all – well-being of our people and
communities
RWS Holdings plc — ESG Report 2023 FRAMEWORKS
The Group categorises risks according to the likelihood of
occurrence and the potential impact on the Group. Impact
is assessed on 昀椀nancial grounds. Financial impact in the
period could be increased costs, reduced revenue, 昀椀nes
or increased management time required to deliver a given
activity.
The Board has direct oversight of climate-related issues
and risks and it agrees our position and commitments on
climate change.
The Executive Team assists the General Counsel and
Company Secretary with the identi昀椀cation of risks through
horizon-scanning sessions. Potential risks related to
existing and future regulation, reputation and markets,
potential 昀椀nancial impacts, and physical climate change
are all considered carefully.
Once identi昀椀ed, risks are prioritised using a risk matrix
approach which assesses the potential impact on
the Group and the likelihood of occurrence. Risks are
assessed over the short-, medium-, and long-term on
both a gross basis and net basis, i.e. without considering
existing mitigations and then with existing mitigations,
respectively.
A formal risk assessment review is undertaken annually
to prioritise principal risks using the above de昀椀ned risk
matrix (impact equals level of hazard vs likely probability).
Potential appropriate actions are also identi昀椀ed. These
risks and actions are presented to the CEO and Board,
in昀氀uencing business strategy.
The Group routinely monitors for emerging regulatory
developments, complies with reporting requirements,
annually benchmarks its performance against climate and
sustainability targets, and develops speci昀椀c action plans
for carbon reduction.
The General Counsel and Company Secretary has
overall responsibility for the Group’s risk management
programme. She is assisted by the Executive Team,
the Head of Sustainability and ESG, and additional top
management.
RWS promotes transparency on its climate-change
management strategy through engagement with
stakeholders throughout its value chain. Details on
how RWS has responded to risks are provided through
news releases, stock exchange announcements, and
publicly published reports such as its GRI Report and its
Environmental, Social and Governance (ESG) Report.
See our 2023 Annual Report for more on our principal
risks and risk management processes, including our
approach to managing ESG risks.
