Risk Management

In addition to the risk management duties of the Audit, Risk & Compliance Committee, the Board has retained responsibility for approving the strategic direction of the Company and ensuring the maintenance of the highest standards of quality. This extends beyond product quality to encompass all ways in which the reputation of the Company and its products are measured. The Board monitors this responsibility through the receipt of regular risk assessment reports and management presentations.

The Audit, Risk & Compliance Committee reviews reports by members of the management team (and independent advisers, where appropriate) during the year and, where appropriate, makes recommendations to the Board in respect of:

• overall business risk in the Company’s countries of operation;
• Treasury risk (in particular, currency and borrowing risks);
• insurance
• procurement
• taxation
• litigation; and
• other matters as it deems appropriate in relation to risk management.

The Committee also reviews and, where appropriate, makes recommendations to the Board in respect of policies relating to the above matters. This includes ensuring that the Company has systems that identify, assess, monitor and manage risk.

The internal and external audit functions also reviews the Company’s risk assessment and management. The internal and external audit functions are separate and independent of each other.

The Managing Director and Chief Financial Officer are required to confirm in writing to the Board, at the half year and full year results, that:

• the integrity of the statutory accounts are founded on a system of risk management and internal compliance and control systems which, in all material respects, implements the policies adopted by the Board; and
• the Company’s risk management and internal compliance and control system, to the extent they relate to financial reporting, are operating efficiently and effectively in all material respects.