Annual report and accounts 2023 - Flipbook - Page 65
Strategic Report
structure and processes were implemented to improve
the identification and management of emerging risks
for the Group, linked to the Board’s strategic planning
process. Standalone emerging risks and opportunities
registers have been put in place for each of Barr Soft
Drinks and FUNKIN; emerging risks are captured on the
relevant risk register and are subject to annual review by
a group comprising senior executives from across the
business, including the CEO and Finance Director.
Recommendations arising from that review are
presented to the Board and the output therefrom
informs the Group’s strategy review presented to the
Board each year. The Risk Committee reviews the
emerging risk registers at least annually. Emerging risks
remain on the relevant emerging risk register until they
are captured on an appropriate risk register or are no
longer deemed to be an emerging risk. The Board has
completed a robust assessment of the Group’s
emerging risks, including those related to climate
change and technology, during the period.
Risk control assurance
Internal audit work is undertaken by an independent
organisation which develops an annual internal audit
plan having reviewed the Group’s risk register and
following discussions with the external auditors,
management and members of the ARC.
During the year the ARC has reviewed reports covering
the internal audit work. This has included assessment of
the general control environment, identification of any
control weaknesses and quantification of any associated
risk, together with a review of the status of mitigating
actions. The ARC has also received reports from
management in relation to specific risk items, together
with reports from the external auditors, who consider
controls to the extent necessary to form an opinion as
to the truth and fairness of the financial statements.
Principal risks and uncertainties
The Board has carried out a robust, systematic
assessment of the principal risks facing the Group
during the period, including those which would
threaten its business model, future performance,
solvency, liquidity or reputation. The table below sets
out the Group’s principal risks as determined by the
Board, the net risk ratings, the net risk movement from
the prior year and examples of corresponding controls
and mitigating actions. The Group’s principal risks have
continued to evolve during the year against the
backdrop of a challenging and uncertain external
environment; management has continued to focus on
the implementation of appropriate mitigating actions
and controls, in line with the Group’s risk appetite. The
principal risks set out in the table below represent the
Group’s current risk profile – these are not intended to
be an exhaustive list of all risks facing the Group. The
principal risks are prioritised on a net risk basis.
Corporate Governance
Accounts
Effective risk
management is
essential to enable
us to achieve our
operational and
strategic objectives
and deliver long
term value creation.
Covid-19
As the Covid-19 crisis continued during the early part
of the year, our primary concern remained the welfare
of our employees, their families and the communities
in which we operate. We followed Government advice
at all times as a minimum throughout the Covid-19
pandemic and took action as appropriate to protect our
employees and our operations. Following the relaxation
of Covid-related restrictions in March 2022, we
continued to take appropriate actions to minimise the
impact on our business, with the health and safety of
our employees remaining paramount.
The Group’s internal control and risk management
systems are designed to manage rather than eliminate
the risk of failure to achieve business objectives and can
provide only reasonable but not absolute assurance
against material misstatement or loss.
The report of the ARC can be found on pages 85 to 88.
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