Annual report and accounts 2023 - Flipbook - Page 64
A.G. BARR p.l.c. Annual Report and Accounts 2023
Risk management
The Board is responsible for the
Group’s risk management and
internal control systems and for
reviewing their effectiveness,
supported by the Audit and
Risk Committee.
Risk management approach
A risk management framework is in place, which
sets out the ongoing processes for the identification,
assessment and management of risks, and for their
ongoing monitoring and review. The Board has
defined its risk appetite in a number of key areas for the
business – this sets out the relative level of risk that the
Group is prepared to seek or accept in the pursuit of
its long-term strategic objectives. The aim is to ensure
that the risks taken by the Group fall within its defined
risk appetite.
Effective risk management is essential to enable us to
achieve our operational and strategic objectives and
deliver long-term value creation. During the reporting
period we have continued to enhance our culture of
risk management throughout the organisation, which
will contribute towards the successful execution of the
Group’s long-term strategy.
Robust risk assessment
The risk management framework sets out a systematic
approach to risk management, which is designed to
identify risks to the business, regardless of source. Once
identified, risks are assessed according to the likelihood
and impact of the risk occurring and an appropriate risk
response is determined in line with the Group’s risk
appetite. Risks are re-assessed based on the strength
of the mitigating controls implemented. The
implementation of risk mitigation plans is subject to
ongoing monitoring and review. A risk-scoring matrix
is used to ensure that a consistent approach is taken
across the business at both a corporate and functional
level. This risk assessment and review process is
documented in the appropriate risk register. Risks are
reviewed on an ongoing basis; the Group’s risk register
is formally reviewed by the Risk Committee every two
months and by the Board and the Audit and Risk
Committee (“ARC”) twice each year.
Julie A. Barr
Company Secretary
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The Board carries out a robust assessment of the
Group’s emerging risks at least once each year using an
horizon-scanning approach together with internal and
external insights. The purpose of these assessments
is to identify key emerging risks for further evaluation,
monitoring and action planning. During the year, a new
