HALF-YEARLY FINANCIAL REPORT 2024 - Flipbook - Page 11
THE EDINBURGH INVESTMENT TRUST PLC / STRATEGIC REPORT / 9
PRINCIPAL AND EMERGING RISKS AND
UNCERTAINTIES
The Board is responsible for the management of risks faced by
the Company and delegates this role to the Audit Committee
(the “Committee”). The Committee, with the assistance from
the Manager, carries out, at least annually, a robust assessment
of principal and emerging risks and uncertainties and monitors
the risks on an ongoing basis.
The Company has a dynamic risk control summary in place,
which includes a description of each identified risk, the
mitigating action taken, reporting and disclosure to the
Committee and an impact and risk likelihood rating. The rating
is given both pre and post mitigation. The information is then
displayed in matrix form which allows identification of key risks
and oversight of the effectiveness of internal processes and
controls. A detailed explanation of the principal and emerging
risks and uncertainties facing the Company can be found in the
Company’s most recent Annual Financial Report for the year
ended 31 March 2024, which is available on the Company’s
website at www.edinburgh-investment-trust.co.uk
Since the publication of the 2024 Annual Financial Report
on 28 May 2024, there continues to be increased risk levels
within the global economy as a result of emerging geopolitical
factors that may translate into greater stock market risk, as
well as heightened macro-economic changes in inflation and
interest rates, the ever-evolving global regulatory and trade
environments and a risk of re-emergence of a global pandemic.
Geopolitical factors include the continuing war in Ukraine, the
conflict in Israel and Gaza, political elections in many countries
and global supply chain issues.
The Board continues to monitor these situations closely and has
been in regular contact with the Manager and the Company’s
other service providers to assess and mitigate the impact on
the Company’s investment objectives, investment portfolio and
shareholders.
Otherwise, in the view of the Board, the Company’s principal
risks and uncertainties are substantially unchanged from the
previous year end and are as much applicable to the remaining
six months of the financial year, as they were to the six months
under review.
